Stanbic lays off 30 employees, more to follow

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Stanbic Bank
PHOTO/COURTESY: Stanbic Bank

Thirty Stanbic bank employees were on Friday last week laid off by the lender as part of its voluntary early retirement scheme that seeks to cut down operational costs for the financier.

According to a news report by the Business Daily, the 30 individuals are part of 88 staff who are set to exit the bank by the end of September after applying for the voluntary early retirement scheme.

“The programme is finished and the response was actually more overwhelming than we expected…We had 135 applications and we only accepted 88. The first group is actually going today (last Friday) and the second is leaving in September. We are staggering the process to avoid disruptions,” Stanbic Bank Chief Executive Officer Charles Mudiwa is quoted as saying by the Business Daily.

The Business Daily also reports that the 88 staff will get “ex-gratia payment calculated at the rate of 1.5 months’ salary for each completed year of service in recognition of the service rendered to the bank.  The laid off staff will similarly be entitled to a 25 percent discount on outstanding loans taken from the bank, if they settle it as soon as they are let go. The laid off employees will also repay their loans at staff interest rates for a period of six months upon which unsettled amounts will return to commercial rates.

Apart from the aforementioned, the employees will likewise remain covered under the bank’s medical insurance scheme for the remainder of the year. They however have the option to withdraw from the medical scheme. Withdrawing from the scheme will see them get reimbursed the equivalent of the cost of the insurance by the bank.

The move by Stanbic mirrors that of other banks such as KCB and the National Bank of Kenya which have retrenched workers in the first six months of the year in an effort to cut down on costs. In the first six months of the year, KCB laid off 240 workers to set its employee headcount at 5,980 while NBK in June retrenched 112 workers in a voluntary retirement scheme similar to that of Stanbic Bank.

ALSO READ: We will not lay off 575 employees: Telkom

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