Access Bank Cuts Staff Salaries to Save Jobs

Access Bank Cuts Staff Salaries to Save Jobs

Access Bank PLC has revealed its plans to reduce employee salaries to ensure that no employee loses their jobs as a result of the cutting effects of coronavirus (COVID-19) on their operations.

This was part of the result of the internal briefing delivered to employees on Thursday, said people with direct knowledge of the matter.

As the lockdown continues so as to curb the spread of coronavirus, the lender, among other measures, said that salaries cuts should begin in May, unless trade conditions improve.

Read Also:  Don’t Use Amotekun Outfit for Political Vendetta - Coalition

Some, among those who were informed about the matter during a conference call and asked not to be identified because they are not authorized to speak publicly, said the bank is being proactive in the matter.

9jatoday concluded that managing director Herbert Wigwe had already indicated the possibility to cut 40% and suggested that the same would apply to other management employees before moving on to the junior employees.

Read Also:  Suspected Herdsmen Kidnap 20-year-old Girl in Anambra

The bank, who has about 30,000 employees, including outsourced and starred, had no plans to fire any employees.

Nigerian banks are facing the threat of rising delinquency levels due to a drop in oil prices and the risk of a naïve devaluation coinciding with the Covid-19 pandemic that closed companies.

Access Bank, which acquired rival Diamond Bank Plc last year, had 6,898 permanent employees at the end of 2019, according to a presentation on its website. The acquisition partially contributed to a 31% increase in operating expenses.

Read Also:  Breaking: Kano Confirms Five New Cases Of Coronavirus

Personnel, recruitment and training costs represent more than a third of overhead after the agreement increases the number of employees and results in “salary harmonization” in companies.

Leave a Reply