Barclays Bank of Kenya to send home 200 reports Reuters

Posted on January 19, 2011

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Barclays bank of Kenya Head Mr Adan Mohammed

Barclays Bank has reported that it will be sending home about 200 mid-level managers. read it here

This comes only days after we reported that the planned operational review at Kenya Commercial Bank, which would see them too send packing most of its bloated work force. read it here

The story by wire service, Reuters, is attributed to the bank’s communications head Ms Nuru Mugambi. The lay-off is expected to help the bank cut costs as it takes a strategic business decision.

The job cuts is expected to continue across the banking industry as the sector comes to terms with the increasing wage bills. Yet, the biggest headache to the banks is not the employees salaries per se.

It is their other emoluments like pension and medical benefits, which are long-term in nature and have a potential of growing with the passage of time.

In 2007, commercial banks in Kenya laid bare their aggression in customer drive that saw many open additional branches and venture into erstwhile non-banking streets like River Road and areas like Gikomba, Kawangware and Eastleigh in Nairobi.

This also saw a rise in the sale of unsecured personal loans that was targeted mainly to fresh graduates in the job market. Three years down the line, this decision has come to haunt them hence the staff rationalization programmes.

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