Diamond Bank Plc has reportedly fired 200 of its staff on Friday as part of the bank’s strategic plan to drive shareholders’ value.
The bank confirmed the development on Tuesday, saying the rightsizing was a core strategic exercise in line with the bank’s growth objective and the will to continue the drive to optimise cost and enhance value for the shareholders at the end of the business year.
In a statement, the bank says in its last appraisal, only 200 staff whose performance scorecards were adjudged to be lower than the minimum required to drive its strategic growth plan for the business year were relieved.
They were given the opportunity to seek employment in other organisations where their respective skills set and individual performances could be enhanced and optimized.
The bank’s yearly appraisal is a general industry standard and enables banks to prune their workforce and prudently allocate resources for optimum result.
Diamond Bank is not an exception in the industry and therefore, had carried out its annual appraisal and found the performance of members of staff that were relieved to be below the required minimum performance level that would sustain them in the system. With its trim-and-fit workforce, the bank is sure to meet its target for the current business year.
Amidst the economic woes plaguing the country and the the financial services industry, this comes two months after the bank announced that its profit before tax for the first quarter of this year fell to N6.04bn from the N7.94bn it recorded in the first quarter of 2015.
The slowdown in the economy has fuelled a high non-performing loan rate in the banking system, causing banks to record sharp decline in their profits for the 2015 financial year and the first quarter of 2016.
As banks battle bad loans, regulatory headwinds and slowdown in the economy, economic and financial analysts believe more lenders will lay off a significant number of their workers in the coming months.