News: Unemployment Increases as Zenith Bank Sacked 1,200 Employees

Zenith Bank – 7th of September, 2015 was a sad day for some employees of the Zenith Bank
PLC who were served notices terminating their appointments and services.

According to Premium Times,  7th of September marks a black day
among the workers of the Zenith Bank PLC as about 1,200 workers have
been relieved of their duties.

There are conflicting reports as regards the actual number of workers
sacked but an initial report has it as 1,200 workers across the several
branches of the bank. A reliable source reported that about 240 people,
including eight General Managers and 40 Assistant General Managers, were
affected.

This has been termed as a means of cutting down the current expenses of
the bank as the top management officials were most targeted.

“One thing that is clear is that Zenith Bank is not under any threat,”
a  source who spoke with Premium Times reporter on condition of
anonymity stated. “With the current crisis in the banking industry in
the country, it is incumbent on any bank that wants to growth to bend
backwards to re-strategize and restructure its operations to expand and
grow.

“The number might not be as high as is being speculated. But, the
decision is not by accident. It is a deliberate one, because the time is
ripe for the bank to restructure the management and reposition its
operations for greater efficiency and profitability both for
shareholders and investors. The decision was inevitable that it had to
happen.

“If one looks at Zenith Bank, it was becoming top heavy, with many of
the managers earning so much that could have been enough to support the
business growth plans. With the action now, there is no doubt that a lot
of money would be saved for the bank.”

The source, however denied speculations about the mode of serving
notification of sack on the affected staff, saying it was not true that
they were informed through text messages.

“A formal meeting was held with the affected staff since Monday this
week, where details of their disengagement benefits were discussed and
agreement reached,” the source explained.

With the latest development, the bank joins the growing list of banks in
the financial sector of the economy to embark on the restructuring of
its staff as a strategy to repositioning for growth after Access bank
that sacked 1,600 workers and Mainstreet Bank parting with about 400
employees.