More Banks Laying Off Workers And Shutting Down Branches


Workers in the Nigerian banking sector are presently facing hard times as a result of adverse economic circumstances.

Several banks, including the “Big 4”, have announced plans to massively lay off workers recently, all in a bid to cut costs and stay profitable in the harsh economic terrain.

The days of ultra-high banking sector profits and prestigious white-collar banking jobs seem to be a thing of the past now. Recently released first quarter earnings reports for most players in the industry showed a sharp decline in revenues and profits for most banks.

Monday night, First City Monument Bank Limited (FCMB) closed down some of its branches and sacked some staff of those branches.

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The branches that were mostly affected by this action were those formerly owned by Finbank, which was acquired by the bank, as well as branches with low profitability and productivity indices.

Reports say that the management of the bank resolved to right-size their operations and shed off some unproductive and unviable branches of the acquired bank, especially in locations where there were more than three branches within the same area because of the present state of the nation’s economy.

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It was learnt that while some of the affected staff members of the closed branches were redeployed to other branches, majority of them were retrenched. Investigations however reveal that most of the retrenched workers were those who had had previous record of poor performance or some other issues.

Few weeks back, one of Nigeria’s foremost banking institutions, First Bank of Nigeria PLC had announced that it would lay off 1,000 workers, all in a bid to stay competitive and profitable.

Other banks known to lay off staff yearly after their performance review are said to have issued sack letters to poor performing staff recently.