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Nedbank in talks over changes to 1500 jobs at its retail unit

Potential job cuts are to cope with sluggish SA economy and increased competition.

Nedbank Group is in talks with about 1 500 employees over potential job cuts at the South African lender’s retail and business-banking division to cope with a struggling economy and increased competition.

The company forecasts that “between 50 and 100 employees are at risk of not being placed in a role,” Johannesburg-based Nedbank said in an emailed response to questions on Friday. “Unplaced employees will then be assisted by the bank to either secure available alternative positions within the bank, which is our first prize, or be equipped for opportunities outside the bank.”

South African lenders are battling to grow revenue faster than costs as they contend with an economy that has shrunk for three of the past five quarters. Consumers have been battered by rampant unemployment, rising taxes, fuel prices and utility bills, pushing them to explore cheaper banking alternatives or digital services. Companies aren’t investing amid uncertainty over electricity supply and surging government debt levels.

Read: Nedbank sheds retail banking staff

“Nedbank is being forced to reshape our operating models and businesses,” the company said. “In doing this, Nedbank actively makes use of natural attrition and a redeployment and reskilling pool. Non-voluntary retrenchments are always the last option.”

Read: Here’s how many branches banks have shut in the last decade

The company, which employs 30 577 people, has also been reducing the floor space used by its branches and increasing the use of automation to lower costs. Nedbank expects the process to be concluded after the final meeting with the labor union Sasbo at the end of this month, it said.

© 2019 Bloomberg L.P.

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Jip, the 4th IR will cut jobs at an ongoing rate, banks will cut the most first, but plenty others will follow more and more.

Unless you have a loan from these big banks their services are limited and expensive. People are also fast realizing that you don’t have to stay at the same bank for 30 years. They have no loyalty to you so please don’t think otherwise.

Time to make them honest again.

imagine how much more they could be paying the board and executives if things were not going bad!

the top three C’s at the top 4 banks probably only got paid half a billion among them?

Seems very optimistic. Nedbank employs about 30,000 people. They are in talks with 1,500 employees about job cuts. but the bank expects that only 50 – 100 employees will be retrenched – sorry I meant “not placed”. The financial impact of 50-100 employees would be miniscule, unless they plan on letting the execs and other senior managers go. Of course they won.t So expect a higher “not placed” count.

Why is the bank so duplicitous in its statements if they have an annual attrition rate of 5% p.a. then the 1500 would work themselves out within a year – not necessarily at the right level but that is a matter to be addressed separately and with a whole different rationale. If they are closing branches as indicated and moving more and more into electronics then maybe they should move these numbers into a “complaints department” as to deal with their call centre staff is courting abysmal service and lack of understanding of banking and the banks systems

many older folk bank with Nedbank because they deal politely & patiently with requests/queries.Less staff means that service levels will deteriorate.Their call-centre/app is not a substitute for employees ‘on the ground’. Please remember Mr Brown that your in-branch staff are your greatest asset, unlike other banks where they are as rare as the dodo.

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