So in as much as I love fashion, there are just some particular news I hear that triggers my economic thinking side, so according to Premium Times, 7th of September was a black day for some of the workers of the Zenith Bank PLC as about 1,200 workers have been relieved of their duties.
There are conflicting reports as regards the actual number of workers sacked but an initial report has it as 1,200 workers across the several branches of the bank. A reliable source reported that about 240 people, including eight General Managers and 40 Assistant General Managers, were affected.
This has been termed as a means of cutting down the current expenses of the bank as the top management officials were most targeted.
“One thing that is clear is that Zenith Bank is not under any threat,” a source who spoke with Premium Times reporter on condition of anonymity stated. “With the current crisis in the banking industry in the country, it is incumbent on any bank that wants to growth to bend backwards to re-strategize and restructure its operations to expand and grow.
“The number might not be as high as is being speculated. But, the decision is not by accident. It is a deliberate one, because the time is ripe for the bank to restructure the management and reposition its operations for greater efficiency and profitability both for shareholders and investors. The decision was inevitable that it had to happen.
“If one looks at Zenith Bank, it was becoming top heavy, with many of the managers earning so much that could have been enough to support the business growth plans. With the action now, there is no doubt that a lot of money would be saved for the bank.”
Economically downsizing has its advantages for the bank, as they said, they get to save a lot more monies which could have been paid to these workers, but something they have refused to look at is the effect it would have on the Nigerian economy, an economy that is already riddled with unemployment in all forms and lack of job security.
These 1200 people who have lost jobs have definitely joined the team of those looking for jobs and hustling in a market that is already so not friendly, but apart from that Zenith Bank would have spent more money implementing a downsizing plan and also planning a recruitment plan to get people back up to those positions, because they would only be left empty to the detriment of the organization.
Another thing is that the downsizing would definitely reduce the loyalty of other managers to the Zenith Bank as most of them would be looking fast for their plan B, as they don’t know who else would be hit by the downsizing bug.
And going back to my major economic problem, UNEMPLOYMENT and possibly an increase in the poverty rate for those who can find something to do sooner.
There was a cab I entered and I got talking with the driver, I was amazed because he spoke so well, very eloquent. I later got to know he was a top official at a commercial bank and all of a sudden everything was gone, and he was reduced to using his wife’s Jeep for transportation. I never felt so bad for someone before.
With the latest development, the bank joins the growing list of banks in the financial sector of the economy to embark on the restructuring of its staff as a strategy to repositioning for growth after Access bank that sacked 1,600 workers and Mainstreet Bank parting with about 400 employees.