Financial giant Standard Chartered is poised to cut the size of its South Korean workforce by up to 13%, the Financial Times writes this morning.
The above in what the bank believes will be the final stage of "a painful overhaul of costs and corporate culture" which this past summer sparked South Koreas longest banking strike, lasting two months.
StanCharts difficulties when attempting to modify the culture it inherited when it acquired Korea First Bank, in 2005, are such that rival banks are watching to see if it successful.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The unions main bone of contention is the banks stated intention to substitute a culture of linking pay to seniority and length of service with performance related pay.
As part of its efforts Standard Chartered has offered an expensive voluntary retirement package for workers of over 35 years of age and with more than 10 years experience at the bank. More than 800 workers have applied.
The cost of the measure has not been disclosed.
As of 10:29AM shares of Standard Chartered are moving up by 0.3% to the 1,368p mark.
AB
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
