COVID-19: Access Bank to slash salaries; advert firms fire 60% of employees
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COVID-19: Access Bank to slash salaries; advert firms fire 60% of employees

- Access Bank PLC in Nigeria has hinted of plans to reduce salaries in a bid to stay afloat due to the effects of the coronavirus

-Acquisition of Diamond Bank PLC led to a 31% increase in operating expenses

- Advertising companies in Ghana have also been affected by COVID-19 with about 60% of employees laid off

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YEN.com.gh has learned that Access Bank PLC intends to reduce salaries as it battles to keep doing business in the wake of the spread of the coronavirus.

Information available shows that the reduction in salaries would very likely start from May 2020, unless business conditions improve.

Even though officials of the bank have declined to speak on the matter, it has been rumoured that staff of the Lagos-based bank would experience about a 40% decrease in salaries.

READ ALSO: ADB's 2020 Q1 profit falls to GHC13 million

Per a report by Starrfm.com.gh, Nigerian banks are facing challenges with rising levels of bad debts.

This follows the crash in oil prices, the risk of a devaluation of the Naira and the economic effects of the outbreak of the coronavirus.

Access Bank reportedly had 6,898 permanent staff as at the end of 2019 and an acquisition of a rival Diamond Bank PLC led to a 31% increase in operating expenses.

It has also been reported that 70% of advertising companies in Ghana have been negatively affected by the coronavirus.

About 60% of workers in the advertising industry have also been laid off.

The sacked employees are reportedly members of the Advertisers Association of Ghana (AAG)

The President of the AAG, Francis Dadzie, noted that it was critical for its members to be supported to come out of the situation.

Meanwhile, energy giant, Shell, has announced a cut in dividend for the first time since the Second World War.

It also revealed it recorded a 46% fall in its net income to $2.9 billion (£2.3 billion) for the First Quarter of 2020.

The reason for the situation is the outbreak of coronavirus and its impact on businesses all over the world.

READ ALSO: Latest BoG report shows there is an economic slowdown in Ghana

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Source: Yen.com.gh

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