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African Bank is in talks with organised labour over plans to possibly cut 1,200 jobs and close 90 branches as it sheds operational costs.The group said in a statement on Thursday that it had entered into consultations in line with section 189A of the Labour Relations Act with finance union Sasbo on Thursday morning.The bank said this action has not been taken lightly and is a direct result of its “current business realities”.The company said it was in a corner with little options but to review staff costs.“While we continue to explore all cost-saving avenues to minimise the impact on people, we have reached a point where we have no other option, but to review our staff costs,” said the group.It said this would impact employees across the various functions of the business, potentially resulting in 1,200 job losses, which could also include the closure of 90 branches.Interim CEO Zweli Manyathi stated that the contemplated job cuts were important to ensure the sustainability of the group’s future.“We understand that this is a difficult period for the business and our people. However, it is necessary for the future sustainability of the business,” Manyathi.Manyathi said African Bank will manage this process alongside Sasbo and await their feedback from their engagement to determine the next steps and craft the process going forward.Manyathi allayed fears by reassuring its customers, investors and stakeholders that it remained capitalised above minimum regulatory requirements, with adequate liquidity to meet its obligations.In June, African Bank posted a R624m loss for the half-year ended March 2026. It also announced a “redefined” strategy focused on operational consolidation.The group flagged that its cost base surpassed its risk-adjusted revenue. As a result, it was now focused on tightening the belt and increasing efficiencies across the board including IT, procurement, its lease agreement costs and other operational costs.The group, which has been on an acquisition spree after buying Grindrod, Ubank and Sasfin’s Capital Equipment and Commercial Property Finance, also announced its decision to further delay its initial public offering to 2030.TimesLIVE
