DBS cuts 900 jobs
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From http://news.sg.msn.com/article.aspx?cp-documentid=1774346
Agence France-Presse -11/07/2008 0607GMTDBS cuts 900 jobs, reports 38 percent fall in Q3 profit
Singapore's DBS Group, Southeast Asia's biggest bank by assets, said Friday it was cutting 900 staff to trim costs amid the global credit crisis, and reported a slump in third quarter net profit.
Chief executive Richard Stanley said most of the cuts, to be carried out at the end of the month, will come from its offices in Singapore and Hong Kong and will account for six percent of the workforce.
"To be a streamlined organisation, I believe we must run a tighter ship," he told reporters.
"We have been vigilant on costs but as the economy enters a more difficult and uncertain phase, many financial institutions around the world and in Asia have made headcount reductions," he added.
"To be more productive and efficient, we will restructure and streamline the organisation. Regrettably, this has resulted in the need to reduce our workforce by six percent or about 900 people, primarily (in) Singapore and Hong Kong, by the end of the month."
Earlier Friday DBS said net profit in the three months to September fell 38 percent as market-related income took a hit from the global financial crisis and bigger provisions.
Third quarter net profit totalled 379 million Singapore dollars (256 million US), down from 610 million dollars in the same period last year, it said in a statement.
Analysts polled by Dow Jones Newswires had predicted an average 572 million dollars net profit.
"The operating environment is increasingly challenging for financial institutions the world over," Stanley said.
"We took upfront prudential levels of allowances to strengthen our balance sheet and with strong capital and liquidity, I believe we are well positioned to ride out the uncertainties ahead."
Net interest income in the September quarter grew two percent to 1.07 billion dollars from last year but net fee and commission revenues dropped 22 percent to 316 million dollars.
Other non-interest income plunged 87 percent on the year to 11 million dollars.
The bank said it set aside 129 million dollars in provisions, compared with just 10 million dollars a year ago, partly to cover its collateralised debt obligations (CDOs) portfolio.
CDOs are securities backed by a range of assets including bonds, loans and their derivatives, including corporate loans, high-grade mortgages, subprime mortgages, car loans and credit card debt.
DBS was the last of three local banks to report earnings for the September quarter.
Oversea-Chinese Banking Corp (OCBC) said earlier this week third quarter net profit fell 13 percent while United Overseas Bank reported last week a 5.1 percent drop in profit for the same period.
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900 is alot
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900 still ok
maybe they will change the figure soon
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This is not the only one. I have known of electronics sector cutting 150 staff too. Anyway, some of the FM had been scapegoat to the minibond saga. Worse, they had been banned from working in all other finanical companies totally
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900 more people fighting for jobs with those who're graduating soon!
Considered alot already, plus these pple have the experiences. -
*#%^!!
that's quick..
but.. how many of the 900 are the people who sold those bonds.. and how many of them are the senile management which gave the go-ahead to aggressively market those bonds?
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With the DBS - Triple Happiness "guaranteed" bonds valued at zeros, more may go.
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i still see UOB people giving out free icecream lol
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becaue those mini or big bounds investors
make noise
so DBS need to pay them money
money from where
public money cannot also later ppl KBKB
so cut staffs
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I just saw a new job advert from DBS leh.
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Originally posted by Miss Tiny:
I just saw a new job advert from DBS leh.
fresh grad cheaper mah.
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Originally posted by Miss Tiny:
I just saw a new job advert from DBS leh.
they need to train new peopleto set up a team to come up
with a new product something like mini bonds
ops.......
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Oh, i see, 900 jobs gone ar...well, unless they cut those directors' jobs that belong to those top Ministers and their relatives, i doubt their situation would improve. Poor DBS staffs, suffered at the expend of top level poor decisions
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bloody hell, I got a friend working in DBS and she always goes home after 10-11pm.. many time she have to work into the wee hours ... all without overtime pay ... now cut staff .. wonder if she have to sleep there now ...
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Originally posted by ORIGAMIST:
bloody hell, I got a friend working in DBS and she always goes home after 10-11pm.. many time she have to work into the wee hours ... all without overtime pay ... now cut staff .. wonder if she have to sleep there now ...
Maybe u should worry if she is one of the 900... -
Originally posted by ORIGAMIST:
bloody hell, I got a friend working in DBS and she always goes home after 10-11pm.. many time she have to work into the wee hours ... all without overtime pay ... now cut staff .. wonder if she have to sleep there now ...
Maybe she got an affair with one of the top people there, so stay up late lor
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don't say that leh ... not so nice ... anyway, I understand her section always have to stay very very late ...
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Originally posted by ORIGAMIST:
don't say that leh ... not so nice ... anyway, I understand her section always have to stay very very late ...
Maybe mah, who know... -
wasn't that guy who said they have to sell these investment bond/trust things to hit a target so that they can keep their jobs?
so now cannot sell liao start to sack?
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Originally posted by oldbreadstinks:
wasn't that guy who said they have to sell these investment bond/trust things to hit a target so that they can keep their jobs?
so now cannot sell liao start to sack?
not sack, retrenchment, one month for one year work...not bad, better get retrenched and leave first, if not the last batch may not get a single cents when DBS declare bankrupt -
Originally posted by oldbreadstinks:
wasn't that guy who said they have to sell these investment bond/trust things to hit a target so that they can keep their jobs?
so now cannot sell liao start to sack?
yeah.. i think so..
thing is, i still want to know how the senile management got them to go sell the things... and if the senile management knew of the hard-sell, or maybe even fraudulent misrepresentations by the sales side..
or worse, the sales side was misinformed about all these and they went out in good faith to sell the stuff to people..
either way, someone in the senile management should know of these things... and if they do and still do not stop the things, they should be culpable...
i wonder how many of the senile management kena the axe... WITHOUT the bloody golden parachute
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Originally posted by the Bear:
yeah.. i think so..
thing is, i still want to know how the senile management got them to go sell the things... and if the senile management knew of the hard-sell, or maybe even fraudulent misrepresentations by the sales side..
or worse, the sales side was misinformed about all these and they went out in good faith to sell the stuff to people..
either way, someone in the senile management should know of these things... and if they do and still do not stop the things, they should be culpable...
i wonder how many of the senile management kena the axe... WITHOUT the bloody golden parachute
definately not, they all knew clearly what they were doing, while i don't think they were out to cheat us with a faulty product i do feel they were making a choice between us parting with our money or them losing their jobs. its unlikely they knew what they were selling beyond sales talk
to meet target management also have pressure so make staff sell more. kinda pity the management, if lower level cannot meet target will kenna sack, meet liao this happen company in trouble also kenna retrenched. don't think lower level management would have any golden parachute.
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900 X 4 = 3600 people.
That is a lot!!!!
Imagine one person feeding 3 persons!
School student = NO allowance
Housewife = NO money to buy groceries
Retiree = NO money to take bus -
so how many top management staff included in the 900???
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Guess Which company will
be the next on the chopping table
?
UOB?