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Johannesburg - Standard Bank Group [JSE:SBK] , the country's largest bank in terms of assets, disclosed on Thursday that up to 1 500 jobs, mostly in South Africa, could be made redundant within the group.
In a note to staff, the group said about 1 200 permanent positions in South Africa were likely to become redundant.
The group is also proposing that around 300 positions in London be done away with.
In addition, about 600 contractors' roles will be terminated.
Of the positions to be shed in South Africa, only about 30% are general staff positions - the balance comprises managerial and executive roles.
In the note, Standard Bank group CEO Jacko Maree and Sim Tshabalala, Chief Executive Standard Bank South Africa, said the group had recently said that as it reviewed its budgets for 2011 all indications were that the revenue pressure, which was evident in the first six months of 2010, would continue during 2011.
"As a responsible management team, we could not rely on optimistic revenue projections and we therefore had no option but to carefully re-examine our cost base and the way in which we operate," they stated.
They continued: "As communicated, this resulted in us analysing all operating costs across the group, including staff costs, with emphasis on managerial and executive costs within our various "head office" environments, particularly Johannesburg and London.
"In South Africa we have consistently engaged with (trade union) Sasbo and our employees to find alternative cost management initiatives to ensure we protect jobs for all employees, including headcount freezes in parts of the business. Following our decision to contemplate the necessity for a retrenchment process, we have over the past two weeks been in in-depth consultation with Sasbo. In London we have formed an appropriate collective consultation forum," they said.
"Approximately 1 200 permanent roles in South Africa are likely to be made redundant. About 30% of these are general staff roles; the balance comprises managerial and executive roles. In addition, about 600 contractors' roles will be terminated. In London we are proposing that 300 roles be made redundant, which includes permanent and non-permanent employees.
"Regrettably, there will be limited redeployment opportunities for retrenched employees. All retrenched employees will be treated fairly and with dignity and will be provided with ongoing support in their search for alternative employment."
The group added that further communication on this process will follow from the respective HR teams.
"There will be full consultation with affected employees. The process in South Africa should be completed by the end of the month. In London we will continue with our collective consultation process.
"We understand that this has been a very difficult and personally challenging period for everyone, but firmly believe that this proposed retrenchment process is in the best interest of the Standard Bank franchise," the group added.
In a note to staff, the group said about 1 200 permanent positions in South Africa were likely to become redundant.
The group is also proposing that around 300 positions in London be done away with.
In addition, about 600 contractors' roles will be terminated.
Of the positions to be shed in South Africa, only about 30% are general staff positions - the balance comprises managerial and executive roles.
In the note, Standard Bank group CEO Jacko Maree and Sim Tshabalala, Chief Executive Standard Bank South Africa, said the group had recently said that as it reviewed its budgets for 2011 all indications were that the revenue pressure, which was evident in the first six months of 2010, would continue during 2011.
"As a responsible management team, we could not rely on optimistic revenue projections and we therefore had no option but to carefully re-examine our cost base and the way in which we operate," they stated.
They continued: "As communicated, this resulted in us analysing all operating costs across the group, including staff costs, with emphasis on managerial and executive costs within our various "head office" environments, particularly Johannesburg and London.
"In South Africa we have consistently engaged with (trade union) Sasbo and our employees to find alternative cost management initiatives to ensure we protect jobs for all employees, including headcount freezes in parts of the business. Following our decision to contemplate the necessity for a retrenchment process, we have over the past two weeks been in in-depth consultation with Sasbo. In London we have formed an appropriate collective consultation forum," they said.
"Approximately 1 200 permanent roles in South Africa are likely to be made redundant. About 30% of these are general staff roles; the balance comprises managerial and executive roles. In addition, about 600 contractors' roles will be terminated. In London we are proposing that 300 roles be made redundant, which includes permanent and non-permanent employees.
"Regrettably, there will be limited redeployment opportunities for retrenched employees. All retrenched employees will be treated fairly and with dignity and will be provided with ongoing support in their search for alternative employment."
The group added that further communication on this process will follow from the respective HR teams.
"There will be full consultation with affected employees. The process in South Africa should be completed by the end of the month. In London we will continue with our collective consultation process.
"We understand that this has been a very difficult and personally challenging period for everyone, but firmly believe that this proposed retrenchment process is in the best interest of the Standard Bank franchise," the group added.
