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
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
