African Bank to retrench staff because Covid-19 hurt profitability in operations

Durban – African Bank said yesterday that it planned to retrench a third of its workforce to contend with Covid-19 and the slowdown in business volumes that has affected its profitability in its operations.

The bank said that 1,269 of its 3,728 employees would lose their jobs as its restructured to meet the new realities imposed by the pandemic.

Chief executive Basani Maluleke said that they had been deliberate in reducing costs in all areas of their business.

“The undertaking of a consultation process with our employees is the last resort to further reduce costs,” said Maluleke. “Our intention throughout the process will be to consider appropriate measures to avoid and minimise potential job terminations. During these unsettling times, we will continue to deliver the exceptional service to which our customers have become accustomed.”

Last year Absa Bank, Nedbank and Standard cut a combined 6680 employees across their operations.

African Bank is a 100% subsidiary of African Bank Holdings (ABH) and ABH is an unlisted registered bank controlling company under the Banks Act.

In the six months to end March results, the group reported muted results given the challenging socioeconomic environment and the impact of the Covid-19 pandemic.

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