Zenith Bank, one of Nigeria’s largest financial institutions, has undertaken a major restructuring process, which has resulted in the layoff of several senior staff members. Sources familiar with the situation revealed on Monday that the changes were part of a broader organisational overhaul aimed at optimizing the bank’s operations.

Senior Staff Layoffs and Promotions

Internal sources disclosed that approximately 66 senior employees were let go as part of the restructuring. The decision was attributed to age and performance factors. In addition to the senior staff layoffs, some junior employees who were deemed advanced in age also faced termination, though certain tier-one employees were given the option to continue working as contract staff.

The restructuring also involved internal promotions and role adjustments, benefiting primarily junior staff members. An internal memo, dated Wednesday, January 15, 2025, revealed that many employees were promoted during this period. Furthermore, the bank implemented a significant salary increase, with a focus on lower-level staff and less stringent criteria for promotions and salary increments.

Focus on Age and Performance

A source familiar with the situation explained that the bank typically targets employees around the age of 60, with a practice of retiring those deemed “no longer looking young.” This move has been a recurring practice, reportedly occurring every four to five years. The same source noted that employees affected by this restructuring are typically well aware of the situation, as it is common knowledge that employees over the age of 60 are nearing the end of their tenure.

Some individuals over 60 were reportedly compensated heavily upon their retirement. This aligns with a wider pattern observed in the Nigerian civil service, where employees nearing the age of 60 are expected to retire, as part of institutional norms.

Growing Pressure on Nigerian Banks

While Zenith Bank has yet to release an official statement regarding the restructuring and layoffs, the decision comes at a time when Nigerian banks are under increasing pressure to adapt to evolving industry demands and optimize their operations. The restructuring is seen as a response to these growing challenges, though further details from the bank remain unavailable.

As of the time of this report, efforts to obtain comments from Zenith Bank were unsuccessful, as calls were not returned, and text messages went unanswered.