African Bank cuts 600 jobs to save R50m a year
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.