First National Bank (FNB) has confirmed to Finweek that it will be reducing the headcount at its Global Transactional Services (GTS) business unit, with approximately 25 people affected.
According to an employee at FNB who contacted Finweek, staff members at the business unit were issued with retrenchment notices earlier today.
In an emailed statement to Finweek Chris Kotze, CEO GTS, wrote:
Global Transactional Services (GTS) is currently restructuring to improve its business model, achieve greater efficiency and improved customer service.
While most teams remain unaffected, others will be realigned and there will be a 2% reduction in employee numbers across GTS. Our current estimates indicate 25 employees may be affected by job losses while others will be redeployed into other positions in the bank.
GTS is following due process by engaging all stakeholders in this exercise, including our labour union. We have received consensus from involved parties and we are currently consulting and finalizing the process with our employees.
Banking groups Standard Bank and, more recently, Absa, have announced staff cuts as the banks have sought to improve their cost base as well as their Return on Equity (ROE).
We will keep you updated as the story develops.