HF sacks employees: Housing Finance, now known as HF Group, has announced that it will sack 9 percent of its staff in a cost-cutting measure.
The mortgage lender says that it will send at least 36 employees home. Group managing director Frank Ireri said the latest layoffs will enable customer-focused decision-making, provide clarity on operational accountabilities and curb operational costs.
“By rationalising roles, we are providing the appropriate gearing towards future growth and addressing current issues such as operating costs for the business, which have remained high and hindered our ability to operate profitably,” said Mr. Ireri who is set to leave HF in March next year.
HF has been on a loss-making streak, having reported a 58 percent drop in profits to Sh. 37.1 million in the first three months of the year.
Its current restructuring is expected to result in merger, redundancy, and creation of new roles for its recently launched digital banking strategy.
The move, the bank announced, commences immediately and targets up to nine percent of the workforce, with those affected being offered a redundancy package.
It had 403 employees at the close of December last year, indicating that the redundancy will affect about 36 employees.
In 2016, the group’s workforce was 479. The latest exit will, therefore, mean that staff size has shrunk by about 112 employees in less than two years.
Operational costs.