African Bank has announced plans to reduce its workforce by approximately one-third, a move the lender says is necessary after operating costs exceeded risk-adjusted revenue in the six months ended March 2026.
The bank informed employees of the restructuring last week, framing the cuts as a response to unsustainable expense levels rather than a strategic pivot.
The decision places African Bank in direct conflict with the Congress of South African Trade Unions (COSATU), which has vowed to actively oppose the reductions.
Union leaders argue that the country’s labor market, already strained by stubbornly high unemployment, cannot absorb further job losses from a major financial institution.
The dispute highlights the tension between corporate cost discipline and social stability in South Africa’s banking sector.
The restructuring comes as global banks increasingly leverage technology to streamline operations.