African Bank cuts 600 jobs to save R50m a year

CityPress - - Business - – Justin Brown

African Bank has re­duced its staff com­ple­ment by 636 full-time em­ploy­ees through a re­struc­tur­ing pro­gramme.

In May, when the re­struc­tur­ing started, the bank was look­ing to cut 652 po­si­tions.

The re­duc­tion is made up of 515 ap­pli­ca­tions ap­proved un­der the vol­un­tary agree­ments of­fer, and nor­mal staff turnover re­sulted in a fur­ther 121 po­si­tions be­ing left open in a four-month pe­riod, the com­pany said on Fri­day.

African Bank said it ex­pected to save about

R50 mil­lion a year as a re­sult of the job cuts.

A once-off cost of about R60 mil­lion to set­tle the vol­un­tary pack­ages would be in­curred and this would be ex­pensed in the bank’s re­sults for the year ended Septem­ber.

African Bank had a staff com­ple­ment of 4 075, which will now be re­duced to about 3 400.

Be­fore African Bank was placed un­der cu­ra­tor­ship by the SA Re­serve Bank in August 2014, it em­ployed more than 5 500 peo­ple.

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