Hundreds of employees at Malawi Savings Bank (MSB) and Financial Holdings Limited (FDH) bank are expected to lose their jobs following the merger of the two banks.
FDH Bank Head of Marketing Sobhuza Ngwenya said in a statement on Wednesday employees from the two banks are to be fired.
“In total, approximately 250 employees from both FDH and MSB will be affected. This notwithstanding the merged bank will be among the biggest employers in the local banking sector,” reads part of the statement.
While backing the development, Ngwenya said the implementation of the redundancy program is in accordance with the labour and employment laws of Malawi and follows good labour practices.
Concurring with Ngwenya, FDH chief executive officer Thom Mpinganjira said a job cannot guaranteed to any employee at both banks.
“In matters of employment a job can never be guaranteed; it depends on performance. To guarantee a job means whether one performs or not they will keep their job,” Mpinganjira said.
Last year Malawi government sold 75 percent of its shares in MSB to FDH Holdings for K9.5 billion.