ONE of Nigeria’s leading commercial banks Access Bank PLC today unveils plans to cut staff strength by as much as 70 percent. Expected to be massively affected are the non-essential workforce – security men, janitors, tea boys, and other cadres of junior workers.
The bank’s Managing Director Dr Herbert Wigwe who disclosed this in a conference call tagged: Town hall meeting with staffs, said the “tough path” remains the only road for the bank to continue to be a major player in the economy post COVID-19 era.
Access Bank PLC, had last month, donated N1 billion to the Coalition of Against COVID-19 (CACOVID-19) account, set up by the Central Bank of Nigeria (CBN) to support the federal government’s fight against the deadly Coronavirus.
It was however not clear whether the bank would be able to go ahead with its plan as the Federal Government has directed no firm should go ahead with any plan to sack its workforce.
The bank also espoused plans to cut salaries of its workers to prevent job losses as lockdown occasioned by coronavirus has drastically affected its income.
Wigwe told workers that the pay cut would start from him with a 40 percent pay slash, while others of staff would be worked on by the bank.
The bank chief said the situation may continue till year end pledging that the situation would be reversed once the working environment improves.
Nigerian banks are facing the threat of rising bad-debt levels as a crash in oil prices and the risk of a naira devaluation coincide with the Covid-19 pandemic that has shuttered businesses.
Access Bank, which acquired rival Diamond Bank Plc last year, had 6,898 permanent staff at the end of 2019, according to a presentation on its website.
The acquisition partly contributed to a 31% increase in operating expenses. Personnel, recruitment and training costs account for more than a third of overheads after the deal boosted employee numbers and resulted in “wage harmonization” across the businesses.