Standard Chartered to cut up to 13% of workforce

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.

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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