Access Bank Plc, in an effort to avoid job losses of staff members, has decided to cut salaries of its employees.
The potential loss of jobs at the Nigerian branch of the bank is due to the impact of the novel coronavirus pandemic on the bank’s operations.
According to Bloomberg, banks in Nigeria are facing the threat of rising bad-debt levels as a crash in oil prices and the risk of a naira devaluation coinciding with COVID-19 pandemic has shuttered businesses.
Staff of Access Bank, who spoke to Bloomberg, said the reductions are expected to start from May and management will get as much as a 40 per cent salary cut.
Employees, who were briefed on the matter during a conference call, were told salary reductions will not take effect should business conditions improve.
Access Bank acquired rival Diamond Bank Plc last year and had 6,898 permanent staff at the end of 2019, according to a presentation on its website.
The acquisition partly contributed to a 31 per cent increase in the bank’s operating expenses.