Stanbic workers defy retirement offer as layoff plans gain momentum

August 23, 2019 (4 weeks ago)
This comes at a time when Stanbic is implementing a restructuring program that will see the company lay off some of its workers as it puts its efforts into digitizing its operations/FILE

, NAIROBI, Kenya, Aug 23 – Stanbic bank has cut its workforce by 88 people after the staffers took the Voluntary Early Retirement package on offer.

This comes at a time when Stanbic is implementing a restructuring program that will see the company lay off some of its workers as it puts its efforts into digitizing its operations.

The bank, which had 1,088 people at the end of 2018, says it received 135 applications for the retirement package but only 88 people qualified.

Earlier this month, an insider specifically spoke to Capital Business where the bank was planning to lay off 255 employees to reduce its operations costs.

The lender said it was targeting permanent and pensionable employees in the layoff plans, which would be implemented under the early retirement scheme.

“We are in the process of transforming our people into the new generation of bankers of the future, with superior skill-set, enhanced professional knowledge and a culture that supports diversity. A fundamental part of our Digital strategy is to create new jobs in different areas of the Bank,” a statement from the bank says.

“This exercise is an outcome of a two-pronged strategy to improve efficiency in the business and reorganise its functions, resulting from the need to become a truly digitally transformed financial services Group that is future ready and competitive in the marketplace.”

The Bank’s employee costs rose by 3 percent to Sh5.595 billion in 2018. However, in the first quarter of 2019, the bank cut its staff costs by 5.3 percent to Sh1.417 billion.

Total operating costs rose by 25 percent in the first quarter from Sh2.85 billion in quarter one of 2018 to Sh3.55 billion.

The bank reported a 14 percent jump in profit after tax in Half Year results for the year ending June 30, 2019, majorly driven by loans and deposits.

During the reporting period, the group’s loan portfolio grew by 19 percent hitting Sh161.9 billion from Sh136.5 recorded in the period ending June 30, 2018.

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