Standard Chartered Plc is initiating targeted employee layoffs across its hubs in Singapore, London, and Hong Kong as part of the bank's ongoing cost-cutting strategy aimed at reducing expenses by over $1 billion until 2024.

In recent weeks, the bank has begun reducing positions in middle office functions, such as human resources and digital transformation, in Asia, as per anonymous sources familiar with the matter. The individuals requested anonymity since the information is confidential, reported Bloomberg. 

According to one source, several managing directors in financial markets have been laid off in London. Additionally, another source stated that some junior staff members will also be let go. While the exact figure has not been finalised, the total number of reductions is expected to exceed 100, as reported by the sources.

“It is part of normal business activity to review our role requirements on an ongoing basis across the bank, to ensure that we remain effective in delivering our business strategy and serving our clients’ needs,” a spokesperson for Standard Chartered said.

The bank has previously announced its aim to achieve savings of $1.3 billion between 2022 and 2024.

Standard Chartered's planned staff reductions are a response to a challenging economic climate and a slowdown in deal activity that have impacted revenue within the global financial industry. 

This comes as Goldman Sachs Group Inc recently announced its own intentions for further job cuts, citing an exceptionally difficult economic environment. Similarly, Morgan Stanley Co-President Andy Saperstein has expressed a pessimistic outlook for the bank's sales, trading, and dealmaking activities.

Standard Chartered, the British lender, experienced limited participation in the fixed income trading surge observed at certain Wall Street banks during the first quarter. The bank's financial markets division recorded a 9% decrease in that period, with income from commodities declining from its previous year's record level.

Bill Winters, the CEO of Standard Chartered, has expressed confidence that the banking system will withstand the present turmoil. However, he acknowledged that there is increased scrutiny on the stability of deposits, as the recent rapid downfall of several regional banks in the US has raised questions about deposit retention.

While headquartered in London, Standard Chartered primarily generates its revenue from its operations in Asia, Africa, and the Middle East. Its largest market is Hong Kong, which is currently recovering from a prolonged period of economic contraction. Additionally, the bank maintains significant operations in Singapore, where its largest investor, Temasek Holdings, is based.