Standard Chartered will cut one in every 10 of its global headcount in corporate and institutional banking, according to media reports, as the lender makes a new effort to reduce overheads to restore its profitability.
The job cuts will be announced this week, according to Reuters, citing people with knowledge of the matter, and will take place in all of the bank's major business centers including Hong Kong.
Corporate and Institutional banking together form one of the bank's biggest business units, contributing just under half of the group's total operating income in the third quarter, which rose to US$153 million.
"We are making our corporate and institutional banking division more efficient, better able to serve our clients and ultimately to increase returns in line with the commitments made to shareholders in November 2015," Standard Chartered said in an emailed statement, without giving the scale of the cutbacks.
At that time, the bank said that it would cut 15,000 jobs in the following three years, as it announced a loss of US$139 million for the third quarter of 2015.
Group chief executive Bill Winters said that the bank had made progress executing the strategic actions it had announced the year before, but that income and profit levels were not yet acceptable.
Banks are increasingly cutting back on positions to preserve their margins, analysts said.
More from the South China Morning Post
Hanjin Shipping collapse may be the beginning of the end for profitable global trade
Hong Kong's richest man vows to elect a leader who can bring hope to the city
Chinese man buys luxury four-wheel drive car with huge piles of small change
"This is the worst environment I've seen since the global financial crisis" for recruitment, said John Mullally, director of financial services at recruitment agency Robert Walters in Hong Kong. "Banks have been holding off on making redundancies, perhaps for longer than they should have done. I expect more job losses in the future, as banks withdraw from markets or sectors where they are not major players."
The statement from Standard Chartered said that the bank would "continue to move investment to where it can generate the greatest returns and focus on the markets which offer the greatest opportunity."