Standard Chartered Bank Fires 200 Employees

Standard Chartered Bank Kenya has laid off over 200 employees as Covid-19 continues to hit hard businesses and livelihood.

Employees in the management roles and unionisable staff is among the people who have been affected in the restructuring exercise in line with the bank’s digitization strategy which began in 2016.

The lender said that employees to be sent home represent 14.3 per cent of the bank’s workforce of 1,397.

The bank has upgraded its internet, video and mobile banking services as well as its Automated Teller Machines (ATMs) in its effort to transition to digital banking services, which have significantly reduced visits to banking halls and gained more prominence with the Covid-19 pandemic.

“In the circumstance, the bank intends to declare redundant the employees whose roles fall off as a result of the restructuring.

“The impacted employees who are both in management and unionisable cadre are 200 in the retail banking, corporate banking, operations, technology and support departments,” the statement read in part.

Sandard Chartered bank branch. Photo/Courtesy

The bank acted on the layoff exercise after the expiry of a one-year period in which the organization was barred from firing its employees following the merger of NIC and CBA.

It has already sent notices to affected employees and will take effect at the end of this year.

The employees have been offered one month’s salary in lieu of notice, pay for accrued leave days at the time of termination and severance pay at the rate of one and a half months per year of service.

The bank’s net profit has significantly dropped by 31.2 per cent to Sh3.2 billion due to Covid-19 pandemic that has hit hard the economy.

Standard Chartered Bank Kenya is the second bank in the country to fire employees, after the NCBA Group sent employees a few months back.

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