KUALA LUMPUR, July 1, 2015:

CIMB Group Holdings Bhd and its Indonesian unit PT CIMB Niaga TBK today announced that a total of 3,599 staff are leaving the firms under the Mutual Separation Scheme (MSS) exercise which ended on May 29 this year.

In a statement, CIMB Group said the management had approved applications from 1,891 in Malaysia and 1,708 in Indonesia.

It said the staff leaving represents a rationalisation of 11.1% of the total workforce in Malaysia and Indonesia.

“While the group will incur approximately RM443.3 million in MSS cost, the resultant savings from the headcount reduction is estimated to be RM291.6 million per annum, which translates to an 18.2 months payback.”

CIMB Group chief executive Tengku Datuk Zafrul Tengku Abdul Aziz said: “With the completion of the MSS, we are on track to meet the targets set in our cost-to-income plans outlined in our T18 strategy.”

The total number of staff leaving the banking group is far higher than had originally been projected.

It has been reported that the banking group has already slashed 15 jobs at its Singaporean unit and cut a total of 150 jobs across its Asian units (namely Hong Kong, Taiwan, South Korea and India) as well as pulling out its Australian unit – which saw 103 jobs lost there.

CIMB Group had reported a pretax loss of RM64.1 million at company level in the first quarter ended March 31, 2015 compared to RM937.56 million previously – largely due to non-interest income plunging to RM876,000 from RM989.07 million in the same quarter of 2014.

Also read: CIMB Group layoff may cull 2,000

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