The Management of Access Bank has revealed plans to lay off 75% of its support staff as well as introduce pay cuts for senior management.
In a leaked video obtained by MyNigeria.com, CEO and Group Managing Director of Access Bank Plc, Herbert Wigwe issued guidelines for laying off bulk of its staff and operating on a lean budget.
According to Wigwe, the plan is to cut off the bulk of its support staff and introduce a pay cut for permanent staff.
Wigwe's words: "So we probably don't need as many security as we require. Even for the fact that we will not have all our branches open till December. We don't need all the cleaners, we don't need all the tellers et cetera et cetera."
"That number of staff which represent 75% of staff strength is the one we need to basically speak with their employers with a view to getting them to rationalise to the levels we think would be necessary to sustain a lean customer service-oriented business," he added.
Moving onto the issue of operational cost, Wigwe said it is very tricky as he announced a pay cut for himself and other members of staff.
"I will be the first to take the hit and I am taking the largest pay cut which is 40%. The rest have to cascade through the institution. Everybody has to make some adjustment of some sort," the bank chief said.
As much as the CEO tried to douse the narrative, he stressed the essence of creating an institution that would stand the test of time with the hope of things getting back to normal.
"What is important is that these adjustments are required at a time when we see armageddon or when we see great difficulty coming in, such that if there is one institution left standing in this country as a bank, it must be Access.
"We know it's a difficult decision but we have to make adjustments to ensure that we protect our franchise to make us stronger in the future," Wigwe concluded.
Access Bank Plc recorded a profit after tax of N40.9 billion in the Q1 2020.
— Poju (@pojugreat) April 30, 2020
They donated 1bn for Covid19. The virus isn’t even over yet. MD don pulled the trigger. Smh
Na wa
The comments were not pretty.
It’s simply how business works.
— Gbololochukwu (@_ordealy) April 30, 2020
As an employee, I’ve told colleagues that this is coming probably before the May salary comes. It’s expected, the revenue stream of the company is depleted, they are not a charity organization.
They are planning for a worst case scenario that businesses might not pick up till December. It is a business and not a charity. Management has to make hard decisions sometimes
— Akinola Folorunsho (@AkinolaFolorun6) April 30, 2020
Pple would generally comment Good or bad.
— Alaga Bam Bam (@IamJibbish) April 30, 2020
How many businesses would drop large money in banks, me wet get 6 digit sef is already thinking of what next to do.
Wailers abound everywhere just fashie
dividends of lockdown.
— Sly (@OOluwasegun_) April 30, 2020
He was doing eye service
— Moon Child ???????? (@TheWhiteQueeen) April 30, 2020
If the bank fails, will the employee wait around to work for free?
— Táíwò (@Kingtaiwo_) April 30, 2020
That aside, my argument is, it took them just 2months for the bank not to be able to sustain their staff’s salaries.
If they didn't donate, people will say they don't care about the masses. It is business, it is quite difficult and choices have to be made. After covid and access bank cease to exist they will still insult the m.d
— Sosa (@Omo_Tes) April 30, 2020
Honestly find it hard to believe he meant appreciate in an offensive context.
— Edalok (@Kolade__) April 30, 2020
The bank recorded a profit of N40 billion for the first quarter of 2020, down from N41.1 billion recorded at the end of March 2019, representing a 0.5% reduction in profit after tax, as reported by MyNigeria.com earlier.
