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Banks slash salaries and cut jobs

Update: May, 21/2014 - 08:29

Eximbank has slashed nearly 500 workers and cut the salary for employees by 31.65 per cent in the first quarter this year. — Photo vietnamnet

HA NOI (VNS) — Eximbank has slashed nearly 500 workers and cut the salary for employees by 31.65 per cent in the first quarter this year, local press reported.

In a separate financial report of Eximbank released last week, average monthly income was an estimated VND10.8 million (US$511) each in Q1, down 27.7 per cent against Q4 last year.

In Q1, the bank spent VND204 billion ($9.6 million) for employees, decreasing VND94 billion ($4.45 million) from Q4.

Eximbank is definitely not alone in the move towards reducing employees in the banking system, which has gone through sluggish credit growth, high bad-debt ratios and painful restructuring process.

Dong A Bank laid off 168 jobs, bringing the total number of employees to 5,133, and trimmed monthly average income by 22.3 per cent to VND7.45 million ($355) each.

Sai Gon – Ha Noi Bank (SHB) has also laid off 100 jobs but raised salaries by 24 per cent from VND12.3 million ($586) each to VND15.2 million ($724) so as to retain good employees.

While Vietinbank employed an additional 410 workers, it slightly cut salaries to VND19 million ($905). Sacombank hired 102 people and raised the average income from VND13.56 million ($646) to VND13.7 million ($652).

Industry experts reported that these steps were necessary because talent source played a core role in doing business.

Last year, in the first six months of the year, 1,200 workers had to leave Vietinbank, BIDV, ACB and SHB due to various reasons. — VNS

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