Overstaffed CBG Lays off 1,700 Workers

A report indicates that over 3,700 members of staff in 191 branches, Consolidated Bank Ghana (CBG) is overstaffed as compared with the likes of GCB Bank, which has 1,915 workers in 185 branches, Ecobank Ghana, which has 1,575 workers in 67 branches and the Fidelity Bank, which has 1,027 workers in 75 branches and as a result has layed off 1,700 workers.

The Daily Graphic through a source revealed to the general public that GH₵60 million is the estimated cost of salaries for all the 3,700 staff and the maintenance of all the 191 branches and outlets of the five banks it took over on August 1, this year.

As a result, it has been understood that the current 191 branches of the CBG will be reduced to around 120 to make the state owned lender efficient and active.

Sources close to the CBG also confirmed that the layoff of about 1700 employees this year was part of the business rationalization programme of the new bank to reduce its current operational cost of about Gh₵60 million per month and reduce staff members.

This rationalization process as however alleged is aimed at trimming down staff numbers and branch networks of the bank to acceptable levels to help make it efficient and solid to be able to survive in a fiercely competitive sector.

It should however be noted that 700 former employees of the BEIGE Bank would be disengaged by the end of August and the other 1,000 workers would be served their termination letters in September this year, after spending virtually two months with their new employer.

By: Hannah Bonful