StanChart cuts 200 jobs as corona defaults hit profit

StanChart says that Kenya has foreign exchange reserves above $8 billion. FILE PHOTO | NMG By VICTOR JUMA
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The bank says its digital transformation strategy that started in 2016 has necessitated a restructuring of its workforce, leading to elimination of some roles.

Jobs will be cut across management and unionisable staff, according to a brief sent to the Banking Insurance & Finance Union and seen by the Business Daily.

The number targeted represents 14.3 per cent of its 1,397 workers on which it spent Sh7.4 billion in the year ended December 2019.

Standard Chartered Bank Kenya #ticker:SCBK is laying off 200 employees or 14.3 percent of its workforce as the Covid-19 pandemic continues to ravage bankers’ profits.

The bank says its digital transformation strategy that started in 2016 has necessitated a restructuring of its workforce, leading to elimination of some roles.

Jobs will be cut across management and unionisable staff, according to a brief sent to the Banking Insurance & Finance Union and seen by the Business Daily.

The number targeted represents 14.3 per cent of its 1,397 workers on which it spent Sh7.4 billion in the year ended December 2019.

“In the circumstance, the bank intends to declare redundant the employees whose roles fall off as a result of the restructuring,” the lender wrote to the Banking Insurance & Finance Union.

“The impacted employees who are both in management and unionisable cadre are 200 in the retail banking, corporate banking, operations, technology and support departments.”
The job cuts are ongoing and will be implemented up to the end of the year.StanChart becomes the second bank to lay off staff after NCBA Group #ticker:NCBA announced it was letting go of an unknown number of employees by December due to the impact of the Covid-19 pandemic on its business.Banks have taken much longer to trim their payroll costs unlike most other sectors that instituted retrenchments soon after the pandemic struck the country in mid-March.The lenders have seen their profits plunge due to increased provisions occasioned by higher credit risk due to the pandemic, which has triggered mass defaults.Those being retrenched have been offered one month’s salary in lieu of notice, severance pay at the rate of one and a half months per year of service and pay for accrued leave days at the time of termination.StanChart’s severance pay is triple the minimum legal requirement of 15 days basic salary for […]

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