Standard Bank - Retrenchments

RustyPrincess

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Standard Bank warns staff of possible retrenchments
The bank admitted in a note to staff that it could be forced to retrench staff, particularly managers and executives within the various head office clusters in Johannesburg and London.
SURE KAMHUNGA
Published: 2010/10/06 07:09:10 AM


STANDARD Bank yesterday became the first lender to warn of retrenchments since the banking reporting season ended in August when it told staff yesterday that cost pressure on revenue could extend well into next year .

The bank admitted in a note to staff that it could be forced to retrench staff, particularly managers and executives within the various head office clusters in Johannesburg and London.

Spokesman Erik Larsen told Business Day it was still too early to say how staff could be affected, as the cost review process was still in its early stages, but as a “responsible” employer, the bank had decided to warn staff that some could be asked to go.

The planned retrenchments come in the wake of recent tepid half-year results released by the three of the top four banks — Absa , Standard Bank and Nedbank — in which their CEOs admitted times were tough and warned of further depressed trading in months ahead.

Banks are under pressure to contain costs in the face of depressed interest-fee income and sluggish demand for credit, both by cash-strapped consumers and the corporate sector.

However, yesterday Ernst & Young said business conditions in the retail banking sector appeared to be improving, with confidence levels rising to their highest in the third quarter since the onset of the global financial crisis. But Standard Bank said it did not share this view yet, saying in the note that all indications were that its revenue would struggle to gain traction next year.

Standard Bank, whose group CEO Jacko Maree recently told Business Day the economic outlook was still uncertain this year, said a budget review process was painting a gloomy future for the bank.

“We are currently in the budget process and all indications are that the revenue pressure which was evident in the first six months of 2010 will probably continue during 2011. As a responsible management team, we cannot rely on optimistic revenue projections and we therefore have no option but to carefully re-examine our cost base and the way in which we operate.

“We are … analysing all operating costs across the group, including staff costs, our single biggest expense item.

“This review is likely to lead to retrenchments at all levels, with emphasis on managers and executives within the various head office environments, particularly Johannesburg and London.”

The bank said it had taken the decision to forewarn staff so they would not hear of the planned cost cutting through the grapevine.
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http://www.businessday.co.za/articles/Content.aspx?id=122895

Thats not very nice news for the staff :(
 
I hope the wife of the little ******* I am wringing my money out of does not lose her job at Standard Bank. They are married in community of property and she needs to pay up!
 
Not a fun process. I work there and the mood is abysmal.
 
This is strange because SB has been recuiting a lot this year. Makes no sense to hire loads of people then fire them soon after.
 
I heard they are only targeting management and not the people who do the actual job.
 
Heita_Hola said:
I heard they are only targeting management and not the people who do the actual job.
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Apart from call centre staff, I think more than half of head office staff are classed as managers. Its determined by your grade, not if you have people under you.
 
Seems the failed/failing Accidenture projects are costing them more than we know
 
Not good, apparently the bank wants to save 450mil and retrenchments will be across the board.
 
Gushesh said:
Not good, apparently the bank wants to save 450mil and retrenchments will be across the board.
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They may lose more than what they want to save. If they retrench people, they will lose clients as well since the union will slash STD bank and we know how many people belong to the unions.
 
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