Standard Chartered cuts 6,000 jobs

Standard Chartered operates mostly in Asia

Standard Chartered bank is planning to cut 6,000 jobs as part of a major restructuring plan.

Standard Chartered is a UK-based bank, but has most of its operations in Asia and the Middle East. Its main operations are in Hong Kong, Singapore, Malaysia and India.

The job cuts will take place over the next two years, and the bank hasn't given clear details yet of where they will fall.

But it is unlikely that many will take place in the UK.

"It will be pretty much spread around the bank, wherever we do business - even in the U.S. and UK markets. It's not just in back office, but front office as well, right across the spectrum," said chief executive Rana Talwar.

The bank said it was undertaking a major productivity programme in order to improve its efficiency and customer service.

It is planning to centralise its cost centres and outsource as many of them as possible.

The programme will cost the company £480m over the next three years, but from 2003 it willl save the bank £170m annually.

"The idea is to free up resources to reinvest in our growth...to move resources away from production and processing to marketing, sales, product development and reinvest in these activities," said chief executive Talwar.

The announcement came as the bank also this morning reported its six month profits rose 25% as a result of lower bad debts and a recovery in Asian markets.