African Bank cuts 600 jobs to save R50m a year

Johannesburg - 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.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

ZAR/USD
17.13
(-0.94)
ZAR/GBP
21.50
(-1.38)
ZAR/EUR
19.33
(-0.65)
ZAR/AUD
11.91
(-0.63)
ZAR/JPY
0.16
(-0.75)
Gold
1793.70
(+0.59)
Silver
18.26
(-0.09)
Platinum
840.00
(+2.49)
Brent Crude
43.07
(+0.70)
Palladium
1934.00
(+0.39)
All Share
55243.80
(+0.72)
Top 40
50922.32
(+0.83)
Financial 15
10086.99
(-0.47)
Industrial 25
76855.87
(+0.55)
Resource 10
52017.34
(+1.71)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1725 votes
I am taking a hit, but should be able to recover in the next year
23% - 2261 votes
My finances have been devastated
34% - 3376 votes
It's still too early to know what the full effect will be
25% - 2449 votes
Vote