Absa Bank has announced plans to retrench more employees in the wake of shrinking profits, the managing director Jeremy Awori has announced.
A internal memo exclusively obtained by Kahawa Tungu from the managing director Jeremy Awori shows that the lender is now targeting employees in the management carder, in a bid to cut expenses.
This comes less than a month after the bank announced mass retrenchment on November 25, that targeted employees in the junior levels through voluntary exit scheme (VES).
“Last month, I announced a Voluntary Exit Scheme (VES) via a Circular dated 25 November 2020. We have reviewed all VES applications and the process is in its final stages. We were however not in a position to accommodate all Colleagues who applied for the VES due to business priorities aligned to their roles. We appreciate that those who were unsuccessful will be disappointed but sincerely hope that they will take this as an endorsement of their contribution to the success of the business,” said Awori.
Awori said that the bank will do further restructuring in a bid to optimise roles primarily in the head office and support functions.
“Consequently, we will be proceeding with a second phase of the restructuring process which will entail carrying out some redundancies in our Management cadre. The process will commence immediately and will include consultation and engagement with the Colleagues that are at risk of redundancy,” added the memo.
Those affected with staff loans will be entitled to four options including full settlement/repayment of all outstanding staff loans on the date of departure/exit. This will attract a 15 percent discount.
The staffers can also choose to settle unsecured loans with the terminal dues and retain secured facilities at staff rates for a period of 12 months from release date then revert to commercial rates.
In case the affected staffers are not willing to adopt the first two options, they can restructure all loans into a fully secured facility subject to credit assessment and approval to enjoy staff rates for a period of 12 months from release date then revert to commercial rates.
In the last option, they can retain outstanding staff loans beyond the date of departure/exit on staff rates for a period of 12 months from release date then revert to commercial rates.