COVID-19: Access Bank To Slash Workers Salaries

Access Bank PLC plans to slash their workers salaries, Bloomberg reports.

According to the report, the pay cut is meant to avoid job losses as the lockdown to contain the coronavirus continues to hamper the bank’s operations.

The reductions are expected to start from May unless business conditions improve, said the people, who were briefed on the matter during a conference call and asked not to be identified because they’re not authorized to speak publicly.

Some management will get as much as a 40% decrease, they said.

Access Bank, which acquired rival Diamond Bank Plc last year, had 6,898 permanent staff at the end of 2019, according to a presentation on its website.

The acquisition partly contributed to a 31% increase in operating expenses. Personnel, recruitment and training costs account for more than a third of overheads after the deal boosted employee numbers and resulted in “wage harmonization” across the businesses.