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HF to cut 36 jobs in reorganisation

By Otiato Guguyu | Published Wed, August 1st 2018 at 00:00, Updated July 31st 2018 at 23:02 GMT +3
Housing Finance office. [Photo/Courtesy]

Housing Finance plans to fire 36 workers, including senior managers, this financial year. 

The lender said yesterday the layoffs would take effect immediately and would be guided by the requisite labour laws and that they would affect both management and other staff cadres.

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Under the new organisational structure, HF said some roles such as the finance one will be merged with those of strategy, sustainability and business performance as the company seeks to trim its workforce.

“The redundancy programme will target up to nine per cent of the group’s total workforce. Those affected will be offered a generous redundancy package approved by the financial services entity’s board,” said the mortgage financier in a notice.

The firm shed 76 workers in 2016, leaving a workforce of 403 workers. It explained that the layoffs were necessary it needed to make its operations digital.

The lender said only workers who would fit the new reorganised structures would be spared the axe.

Digital services

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Newly created roles include a chief digital officer who will be responsible for the achievement of revenue growth and customer acquisition targets through effective brand management, communication, and trade marketing interventions under the aegis of digital financial services.

The role of a chief commercial officer will be created in the new structure. The official will be tasked with implementing effective go-to-market strategies, sales, product development and customer experience to drive business growth and market share for the full-service banking entity.

HF said this would help it manage costs in the current trend where lenders are increasingly relying on mobile channels rather than bank tellers.

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The country is estimated to have more than 90 per cent mobile phone penetration, with Sh1.22 trillion worth of transactions having taken place through such channels in the second quarter of last year. 

HF recently launched a digital financial services platform dubbed 'HF Whizz' to accelerate the growth of the bank’s digital banking strategy

 


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