Talks are ongoing with finance union, Sasbo.
African Bank says it has embarked on reducing costs. Picture: Supplied
African Bank, rescued by the South African Reserve Bank more than a decade ago after collapsing under the weight of reckless lending and financial distress, is once again facing a major overhaul.
The bank on Thursday confirmed it has entered a restructuring process that could result in 1 200 employees losing their jobs and up to 90 branches closing, as it looks to cut costs.
“African Bank has reached the contemplation stage of Section 189A of the Labour Relations Act,” said the lender. “As such, we have engaged with our relevant union, Sasbo, this morning.”
African Bank’s strategy
In a statement, African Bank said it does not take the action to retrench employees lightly, but it is a “direct result of our current business realities”.
The bank’s interim results, published on 25 June 2026, highlighted a strategy based on operational consolidation, including the optimisation of all costs. African Bank notified shareholders in the results that its costs exceed the risk-adjusted revenue.
The retrenchment talks follow.
“As a consequence, we have been focusing on reducing costs and increasing efficiencies across our full value chain, including IT, Procurement, our Lease Agreement Costs, and other operational costs.”
African Bank looks at other cost-saving measures
The lender assured its employees that it will continue to explore all cost-saving avenues to minimise the impact on people; however, it has reached a point where they “have no other option but to review staff costs”.
“This will 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 Group CEO Zweli Manyathi said this decision is necessary for the lender.
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”.
There is still money to meet obligations
The lender also reassured customers and investors that it remains capitalised above minimum regulatory requirements, with adequate liquidity to meet its obligations
“The potential impact on all African Bank staff will be managed through a structured process and supported by our wellness partner.
“We will ensure that we are transparent and treat each employee with dignity and respect, in line with the values of our organisation.”
