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Banks To Rationalise Staff, Branches As Costs Mount - Business - Nairaland

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Banks Lose Over N1bn As Hoodlums Wreck ATMs, Branches / Access Bank Denies Sacking 75% Of Workforce, Closing Branches / Court Shuts Osun Polaris Bank Branches As Customers Lament (2) (3) (4)

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Banks To Rationalise Staff, Branches As Costs Mount by dre11(m): 7:31am On Jan 11
LAGOS – As businesses begin to get in shape for activities in the new year, there are strong indications that com­mercial banks in the country are seriously tinkering with the idea of embarking on in-house cleaning of its operations and reorganisation.

The reorganisation, Daily Inde­pendent learnt, may involve staff rationalisation, which was suspend­ed last year, closure of redundant branches and other management issues to free their books of avoid­able expenses.

Already, banks that are heavily involved with outsourcing firms to run their marketing and retail de­partments have drastically reduced the number of outsourced staff in the system.

In May last year, some banks, in the thick of the lockdown, made attempts to lay off some members of staff in anticipation of facing the backlash of the coronavi­rus impact on the economy but the Central Bank of Ni­geria (CBN) intervened.

The CBN and the Bank­ers’ Committee ordered all banks in the country not to retrench or lay off any staff of any cadre (either full-time or part-time) while the apex bank also said that its approval must be sought if it becomes absolutely nec­essary to lay off any such staff.

The decision was taken at a special meeting of the Bankers’ Committee con­vened to further review the implications of the COVID-19 pandemic on the Nigerian banking industry.

“The committee partic­ularly deliberated on the issue of the operating costs of banks in view of the dis­ruptions emanating from the global economic difficulties and decided that in order to help minimise and mitigate the negative impact of the COVID-19 pandemic on fam­ilies and livelihoods, no bank in Nigeria shall retrench or lay off any staff of any cadre (including full-time and part-time).

“To give effect to the above measure, the express approv­al of the Central Bank of Ni­geria shall be required in the event that it becomes abso­lutely necessary to lay off any such staff. CBN solicits the support of all in our collec­tive effort to weather through the economic challenges oc­casioned by the COVID-19 pandemic,” the CBN said in a statement.

However, some notable Tier 1 banks, while shelving the idea of laying off their staff, restructured salaries.

Following the assurances to shareholders that the bank is considering new ways to ef­ficiently withstand the effects of coronavirus pandemic on businesses, a top lender, Access Bank, announced that it is restructuring sala­ries “across the institution as a result of the impact of COVID-19.”

“We are today, as an institution faced with the current economic crisis resulting from the pandemic, we have taken certain measures to control costs across the insti­tution at all levels, to achieve greater efficiency and contin­ue to run a profitable busi­ness post-COVID-19,”
Herbert Wigwe, the bank’s Group Managing Director and CEO, had said in a statement.

After the CBN’s interven­tion, which was at the height of the coronavirus pandemic last year, CEOs of banks in the country elected not to car­ry on with the planned ratio­nalisation and pledged not to cut any jobs in 2020 because it was the wrong thing to do.

However, as bank exec­utives prepare for another round of possible lockdown and extended recession and loan losses that come with it, lay-offs are back on the table, said consultants, industry insiders and compensation analysts.

Economists and execu­tives expect the economy to take longer to recover from recession, with high unem­ployment into 2021 and the idea of staff lay-off may not be unexpected.

On top of that, working from home has shown some managers that they need few­er employees to do the same amount of work.

According to Stephen Iloba, an economist, “No question, lay-offs will come across the board for all the banks.”

“Bank staff could shrink by an average of 5-10 percent mainly at mid-and lower levels in technology, human resources and finance depart­ments,” according to Global banks bleeding.

HSBC, the behemoth in­ternational bank, last year announced it would reignite its prior plan for a massive 35,000 job cut. The lay-offs were originally slated to start back in February, but HSBC placed the layoffs on hold during the COVID-19 pandemic.

In light of the current challenging business climate, coupled with falling profits, the bank claims that it has to act now to rein in costs. HSBC will also enact a firm-wide hiring freeze.

JPMorgan Chase & Co. al­ready cut around 100 jobs as of mid-July 2020, according to comments on social media. People who said they worked in three divisions – the com­munity and consumer bank, the commercial bank and the corporate and investment bank – said they were let go.

Wells Fargo & Co. resumed cutting jobs in August 2020 after putting lay-offs on hold in March. The affected staff have so far been in technol­ogy and retail banking, and management is planning thousands more lay-offs this year and next, sources said.

Among global banks, Standard Chartered PLC and HSBC Holdings PLC have let go of several hundreds of employees last year. Standard Chartered plans to lay off a few hundreds more this year and early next year, accord­ing to bank sources.

https://www.independent.ng/banks-to-rationalise-staff-branches-as-costs-mount/

Re: Banks To Rationalise Staff, Branches As Costs Mount by osamz007: 7:42am On Jan 11
WAHALA FOR PERSON WEY STILL DEY INTERESTED IN BANKING JOB

49 Likes 2 Shares

Re: Banks To Rationalise Staff, Branches As Costs Mount by yusluvad(m): 7:50am On Jan 11
Wahala for who no be Entrepeneur!

34 Likes 1 Share

Re: Banks To Rationalise Staff, Branches As Costs Mount by osamz007: 7:55am On Jan 11
DOUBLE WAHALA FOR PEOPLE WEY THEIR WHOLE DEPENDENCE BE ON FCMB BANK

28 Likes 1 Share

Re: Banks To Rationalise Staff, Branches As Costs Mount by IMASTEX: 10:34am On Jan 11
What a year for those that will be affected. Bank job is one of the most riskiest employment to fully depend on.


Meanwhile, it's a fresh year to get busy creating wealth. Join our practical teaching on snail farming. Click here for free.

5 Likes

Re: Banks To Rationalise Staff, Branches As Costs Mount by southniyikaye(m): 10:34am On Jan 11
Omo, things are getting extremely hard..
God, grace is all I ask for this year, grace to Excell in everything I lay my hands on this year...
And let your mercy overshadow me cos I have no one neither do I believe in anything else except you almighty God

60 Likes 4 Shares

Re: Banks To Rationalise Staff, Branches As Costs Mount by MansoryMX(m): 10:35am On Jan 11
One of the many reasons I never worked in a bank despite so many opportunities to work in banks these past years. Self employment, Street, hustling deals daily from middle man sales of cars, real estate to anything at all is just the best way to live in this country and not die of frustration. Then if e sure for your side run away from this country! God forbid nonsense!

17 Likes 2 Shares

Re: Banks To Rationalise Staff, Branches As Costs Mount by Masking: 10:35am On Jan 11
cheesy
Re: Banks To Rationalise Staff, Branches As Costs Mount by janedonez(m): 10:35am On Jan 11
Tragic, when others say there is a casting down, we shall say, there is a lifting.

37 Likes

Re: Banks To Rationalise Staff, Branches As Costs Mount by jawalis(m): 10:35am On Jan 11
The rate at which people are becoming jobless all because of this covid is getting worse.

2 Likes

Re: Banks To Rationalise Staff, Branches As Costs Mount by Harrykn: 10:35am On Jan 11
Ffk, People still full street
Re: Banks To Rationalise Staff, Branches As Costs Mount by MANNABBQGRILLS: 10:35am On Jan 11
In May last year, some banks, in the thick of the lockdown, made attempts to lay off some members of staff in anticipation of facing the backlash of the coronavi­rus
Coronavirus, you have done enough in this world please.
Pack your bags and leave us alone biko.

We only thank God for life.....in all these.

5 Likes 1 Share

Re: Banks To Rationalise Staff, Branches As Costs Mount by Emaxwell(m): 10:35am On Jan 11
osamz007:
WAHALA FOR PERSON WEY STILL DEY INTERESTED IN BANKING JOB

Bug wahala for people when no get plan to leave this country

12 Likes

Re: Banks To Rationalise Staff, Branches As Costs Mount by ChangetheChange: 10:35am On Jan 11
grin grin grin
Wahala for banker wey no thief better money for bank , travell out with him family before dem downsize am

6 Likes 1 Share

Re: Banks To Rationalise Staff, Branches As Costs Mount by Kollysman1: 10:35am On Jan 11
h
Re: Banks To Rationalise Staff, Branches As Costs Mount by MANNABBQGRILLS: 10:36am On Jan 11
Emaxwell:

Bug wahala for people when no get plan to leave this country
Wise Words from the elders :

1. A lizard in Nigeria cannot be an Alligator in America!

2. Success comes from above, not from abroad!


Goodluck on your journey btw......

Agboriotejoye:

it's better to be a lizard in America than one in Nigeria.
Okay, Happy Lizardry Agbori.
Safe trip and Bye!

7 Likes 2 Shares

Re: Banks To Rationalise Staff, Branches As Costs Mount by GamalNasser: 10:37am On Jan 11
I predicted early last year when I saw all banks where making a deliberate effort to ginger the agency banking , once again I am right

2 Likes

Re: Banks To Rationalise Staff, Branches As Costs Mount by slawormiir: 10:37am On Jan 11
Damnnnnn niggarrr
Isoright

1 Like

Re: Banks To Rationalise Staff, Branches As Costs Mount by ATEAMS: 10:37am On Jan 11
It's a Digital world baibii
Re: Banks To Rationalise Staff, Branches As Costs Mount by brunofarad(m): 10:39am On Jan 11
Ok

1 Like

Re: Banks To Rationalise Staff, Branches As Costs Mount by Biingoo: 10:39am On Jan 11
Hmmmmm
Re: Banks To Rationalise Staff, Branches As Costs Mount by Kollysman1: 10:39am On Jan 11
Union bank Dy there?
MANNABBQGRILLS:

Coronavirus, you have done enough in this world please.
Pack your bags and leave us alone biko.

We only thank God for life.....in all these.

you don take vaccine? wey be objective of COVID-19
Re: Banks To Rationalise Staff, Branches As Costs Mount by doggedfighter(f): 10:39am On Jan 11
Reason they're encouraging p o s business

4 Likes

Re: Banks To Rationalise Staff, Branches As Costs Mount by Reinaldo: 10:40am On Jan 11
APC!!! Change!!! cheesy


MANNABBQGRILLS:

Wise Words from the elders :

1. A lizard in Nigeria cannot be an Alligator in America!

2. Success comes from above, not from abroad!


Goodluck on your journey btw......

What is this one smoking?

2 Likes

Re: Banks To Rationalise Staff, Branches As Costs Mount by Branzy(m): 10:40am On Jan 11
Pos business will make lot of banks reduce staffs and close some branches

9 Likes 1 Share

Re: Banks To Rationalise Staff, Branches As Costs Mount by DropsMic(m): 10:40am On Jan 11
Chei... Na wa o
Re: Banks To Rationalise Staff, Branches As Costs Mount by Coronavirus84: 10:41am On Jan 11
Unemployment increase rate loading..........
Re: Banks To Rationalise Staff, Branches As Costs Mount by justosee: 10:41am On Jan 11
yusluvad:
Wahala for who no be Entrepeneur!
must we all be entrepreneurs? I am not sure you will type this if the news will affect your job.

The economy is in ruin and it will affect every sector. even entrepreneurs will be affected with time

16 Likes

Re: Banks To Rationalise Staff, Branches As Costs Mount by IceColdVeins(m): 10:41am On Jan 11
MansoryMX:
One of the many reasons I never worked in a bank despite so many opportunities to work in banks these past years. Self employment, Street, hustling deals daily from middle man sales of cars, real estate to anything at all is just the best way to live in this country and not die of frustration. Then if e sure for your side run away from this country! God forbid nonsense!
Bro I have a house urgently for sale. No agents involved!

2 Likes

Re: Banks To Rationalise Staff, Branches As Costs Mount by nedekid: 10:43am On Jan 11
More Sai baba folks to loose their jobs.
My paddy weh be die hard Sai baba gang don turn to Chai baba, him need wailing form but I tell am say e don finish. Lol

8 Likes

Re: Banks To Rationalise Staff, Branches As Costs Mount by dfrost: 10:43am On Jan 11
Not again.

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