StanChart spends Sh611m on layoffs

Standard Chartered Bank Kenya #ticker:SCBK spent Sh611 million last year to lay off staff, being 3.5 times higher than in the previous year as it deepened its digital banking strategy.

Details contained in the annual report for the financial year ended December 2018 show that the rise in redundancy charge came as the number of employees categorised as “other” dropped by 52 and those in management reduced by two.

The bank has been increasing its digital services, including launch of video banking. More than 80 per cent of its customers are now signed up to digital banking platforms, according to the annual report.

“Our mandate includes driving efficiency through the digitisation agenda to not only reduce operational costs but importantly, to help in the creation of a genuine digital corporate bank,” it says.

The redundancy drove up employee costs for the year by 8.9 per cent to Sh7.65 billion despite the overall number of staff at the end of the year dropping by just 20 due to replacements.

Stanchart closed the year with 1,567 employees, 53 percent being female. Employees in management category was 1,238 while unionaisable ones were 247, being an increase by 34 from previous year.