The Strategist

The Largest European Banks to Slash 30 Thousand Jobs

11/04/2015 - 13:10

Standard Chartered is the third European bank to announce massive layoff in less than two weeks. The largest banks in Europe will cut more than 30 thousand jobs, or nearly one in seven employees.

Cara Chow (Charlotte1125)
Cara Chow (Charlotte1125)
London's Standard Chartered plans to close 15 thousand positions, what is about 17% of all labor.

The downsizings will help to reduce costs, which rose strongly against the background of growth of "bad" loans.

Last week, Deutsche Bank reported layoff of 11 thousand jobs, while Credit Suisse will cut another 5.6 thousand.

Now, the three largest banks in Europe are taking serious steps after the financial crisis. Stricter capital rules are exerting strong pressure on margins. Standard Chartered and Credit Suisse are still planning to pay profits to its shareholders, meanwhile Deutsche Bank has suspended payments to preserve capital for the next two years.

All of this is just one more proof that the European banks have not been able to adapt quickly enough to the post-crisis world, and are playing catch-up now.

Other banks in the region will also have to decide on similar measures. Italian UniCredit SpA is considering staffing cut in amount of 12 thousand jobs.

Earlier it was supposed to cut only 10 thousand, but the final figure will depend on results of assets sale.

Since July, Deutsche Bank began to reduce 26 thousand jobs through sale of assets – this is a quarter of the entire workforce. The process is planned be completed by 2018.

Credit Suisse will cut jobs in the US, UK and Switzerland.