Standard Chartered to freeze staff and cut bonuses to weather crisis
Ftse 100 bank Standard Chartered has told staff it is freezing hiring for two months and said it is likely to cut bonuses, as it grapples with the fallout from the coronavirus pandemic.
The Asia and Africa-focused bank said it would also re-prioritise discretionary investment for the time being, the company said in a memo seen by newswire Reuters.
The memo said the lender expected to have to make “sensible adjustments” to any variable compensation for 2020 given its finances were “likely to be challenged”.
The bank also plans to re-invest the money saved on employee travel costs in technology to help staff work from home better.
Credit card issuer American Express also told staff today it was freezing hiring in response to the crisis.
Bloomberg, citing a video message to staff from chief executive Stephen Squeri, said the company will freeze hiring to avoid making job cuts this year.
More than 60,000 employees were now equipped to work from home, according to the report.
UK banks are likely to review their announced dividends this year to retain cash, an industry body said today.
“Given current uncertainties and the importance of finance providers being able to play their vital role in supporting the economy… finance providers are likely to want to discuss their dividend policy with their boards, shareholders and supervisors and review their 2020 distribution policy carefully,” UK Finance said