A source who is a top management staff of one of the first generation banks told leadership Weekend on condition of anonymity that only two days ago, his bank laid off one thousand staff nationwide adding that the mostly affected in the downsizing exercise are desk officers.

He said, “As I speak with you now, about one thousand of our staff are already on their way out, because we can no longer accommodate them, but what we have done is to lay off more of the desk officers”.

Asked why the attention is on desk officers, the source said, “If you lay off those who go out to look for deposits you will worsen the situation, so we have to look at the survival of the bank first, the consequence of allowing desk officers to stay and sacking those who bring deposits will be higher, so we took the safer option of letting desk officers go”.

“The truth of the matter is that some of these deposits, especially fixed deposits help the banks a lot, now, there is directive that government funds be withdrawn, on one hand it will ensure accountability, but on the other hand the banks will also have to reduce their staff strength or be ready to recapitalise.

Another source told our correspondent that about 1,500 staff of a new generation bank were also laid off yesterday for the same reasons.

The source stated further that most of the staff laid off were those on temporary appointments. He said, “The problem is that, if you lay off permanent staff at once, you also have to pay them all their entitlements otherwise they will take you to court. Yes, majority of the people we truly do not need are unfortunately the permanent staff, but because of the confusion and litigation that will follow, we decided to relief those with temporary appointments. It is a painful decision, but we have to do it in other to save the banks.

“We have prepared their disengagement letters and most of them will be communicated next week. I tell you, not only here, all the banks will follow this line. That is the situation”.

Confirming the sack, a staff of one of the highly rated new generation banks with branches in each state capital and reputable for excellent services, who simply gave his name as Chukwuma said, “I got my letter of disengagement on Thursday, I was devastated, but at the same time I knew it will get to this point, because most of the commercial banks in Nigeria have very fat accounts of government agencies and ministries that runs into billions of naira.

“Some of these funds are not withdrawn for six months or even more and banks trade with them and make profits. So once you shut that angle of business certainly the banks will bleed, so if, other people did not expect sacks, then they must be day dreaming”.

SeverusSnape:
Since Buhari came on board, thousands of Jobs have been lost.

Axeurdaddy:


Mr Severus, Please do not do this. Mention one administration since the days of Obasanjo that people did not lose their jobs.

This isn't about the Presidency, Its a national dilemma. We should be concerned about the solution rather personalising the problem on the Presidency, except if you're happy about it.

SeverusSnape:

Buhari's own is worse, I'm not happy about it, because I have friends who are Bankers.

Axeurdaddy:



We both know it isn't, Do not allow petty hatred cloud your sense of judgement. I have friends and families who lost their jobs in Jonathan's era as well.

SeverusSnape:

Is that so... I have friends who have lost their jobs and means of lively hood since Buhari took over, Just four months!

Axeurdaddy:



I have relatives who had everything going good for them before Jonathan became the president and the harsh economic situation of the country led to them being booted out of their jobs. How's that too?

ademega:
painful but the sacrifice for change and corrupt free society. when everything stabilize, they will get job and smile again.

SeverusSnape:

Oh, really?!... I had aquintances who were hale and hearty before Buhari came on board, all of a sudden, They are now on sick beds, because of the downward slope of our health care system under Buhari. How about that?

Axeurdaddy:



This should obviously point out to you that the issue of downsizing in companies or financial institutions isn't peculiar to this administration alone, Its a cankerworm that has been embedded in the fabrics of our economy. Crying Wolf won't solve the problem.

Asides the issue of TSA, Banks downsize at intervals, A massive retrenchment exercise was called out in the banking sector last year, Was PMB the president then? My point is, Something needs to be done about Employment Generation so everyone doesn't rely on banks because the Banking Industry has been the largest employer of Labour for the past 4-5yrs.



Healthcare?? C'mon bro. Our hospitals have always been bad. Even GEJ and his Wife used to travel abroad for medical attention so what's the fuss about?

Axeurdaddy:



This should obviously point out to you that the issue of downsizing in companies or financial institutions isn't peculiar to this administration alone, Its a cankerworm that has been embedded in the fabrics of our economy. Crying Wolf won't solve the problem.

Asides the issue of TSA, Banks downsize at intervals, A massive retrenchment exercise was called out in the banking sector last year, Was PMB the president then? My point is, Something needs to be done about Employment Generation so everyone doesn't rely on banks because the Banking Industry has been the largest employer of Labour for the past 4-5yrs.



Healthcare?? C'mon bro. Our hospitals have always been bad. Even GEJ and his Wife used to travel abroad for medical attention so what's the fuss about?

Jwhizzy:


I admire your courage for continuing to respond to this troll. Banks with plans to lay off staff just found a convenient excuse. The truth is some of these banks strongly skewed their borrowings in favour of politicians and businesses which were pro-pdp in the last administration. Now that power has shifted hands, honey has stopped flowing in certain directions and loans have gone bad.

SeverusSnape:

You're right, Banks always retrench from time to time, It happened during the time of Yaradua, Jonathan, Obasanjo and it's happening under Buhari. But didn't you see that report of sixty (60) thousand construction workers losing their jobs?, Did you read the report from the National Bureau of statistics some weeks back?...Isn't this an era of "change"?... things should be changing positively or at least remaining as it was; It's getting worse.

Axeurdaddy:




Did you know that over 70% of Nigeria's 80Million youths were unemployed during GEJ's administration??

RichDad1:
This is no news. It's a common knowledge that Bank job is one of the volatile and inducted job in the country today.
Banks been sacking since 2010.
Trying to associate it with the TSA is just myopic.