Finance labor union Sasbo was notified to begin consulting staff last week on the potential impact of the move, union representative Philip Landman said by phone Wednesday. About 15 retail-banking executives exited their positions at the Johannesburg-based lender in June, after a similar process was followed to flatten the unit’s top structure.
“It is only once the realignment is complete that the total number of people who have either been appointed to new roles or have left the organisation will be known with certainty,” Absa said in emailed comments. The changes will result in “both new opportunities and redundancies across the business,” it said, adding that the steps aren’t a “retrenchment exercise, but a realignment effort aimed at enabling our new strategy.
Retail and business banking accounts for more than half of Absa’s profit and is at the center of a group-wide push to grow revenue faster than its competitors after the lender’s former UK-based parent, Barclays, sold down its controlling stake to below 15%. The division’s chief executive officer, Arrie Rautenbach, who was appointed about a year ago, is focusing on boosting mortgage lending, lowering costs and expanding the number of products sold to its clients. Rautenbach is implementing his strategy as South Africa’s banking sector becomes increasingly competitive with one new rival, TymeBank, launching in February and two more are expected to follow this year.
Fin24 Nice love it ANC can give them jobs 🤣🤣
Fin24 Before every election, jobs and job creating for the masses are promised, but all we see is retrenchments. Where are all the promised jobs?
Fin24 kos okay, according to you ABSA is corrupt and you left, so where are you now? The very honest VBS or whatever bank? Good luck friend!
Fin24 Is it a revamp to improve services or is it a revamp to cut costs so that they can make more profit? We cannot afford to add more to the unemployment rate.
Fin24 I left absa years ago, kakest bank around. Fokken abses
Fin24 Issues with fraudulant transactions are common.
Fin24 Oh no- dejavu🤦🏽♀️
Fin24 People are gonna lose jobs from all retail banks. Absa is just leading the revolution in this sector.