Bidvest has announced plans to retrench a number of employees in its banking division, as it grapples with the fallout of the coronavirus pandemic.<\/p>\n
In an internal letter sent to employees, the group said that it anticipates up to 400 employees in its personal banking, business banking and support divisions will be affected by the retrenchments.<\/p>\n
The group said that the job cuts had been necessitated by reduced revenues being experienced, taking into account the reduced demand for certain products and services.<\/p>\n
Thinus Liebenberg, Bidvest Bank financial director and acting managing director said that the Covid-19 pandemic has accelerated the demand for digital access to financial services and the decreasing need for traditional ways of interacting with banks and other service providers.<\/p>\n
“Bidvest Bank has also experienced a significant impact on its financial results and revenues over the last few months as a result of the Covid-19 pandemic, further compounded by the general economic environment.<\/p>\n
“A strong digital platform in the current environment is going to be crucial to remain sustainable and competitive.”<\/p>\n
Liebenberg said that the bank will therefore be embarking on a significant organisational restructure to serve customers more efficiently.<\/p>\n
He said that there are currently 1,037 permanent employees within the Bank. Of this number, approximately 650 employees will be affected in the Personal Banking, Business Banking and Support divisions.<\/p>\n
Taking into account the nature of the organisational changes that the Bank is currently considering, it is anticipated that approximately 400 employees could be retrenched, he said.<\/p>\n
In a June trading update, Bidvest said that it will be looking at retrenchments across all of its core groups as it faces the impact of the coronavirus pandemic.<\/p>\n
It said that the pandemic will result in long term socio-economic shifts and consequently long- term structural changes to the economy and business in general.<\/p>\n
“The group will strategically review all Bidvest businesses and right-size operations to make sure that our operating models remain relevant and appropriate for the level of demand.<\/p>\n
“This may lead to retrenchments across all six divisions in order to reinforce their competitive positions in the future, and ensure that the businesses have the potential of sufficient scale.”<\/p>\n