African Bank is engaging with the Sasbo finance union to discuss potential job cuts of up to 1,200 positions and the closure of 90 branches as part of its strategy to reduce operational costs.

The bank emphasized that these measures are a direct response to current financial challenges, including a R624m loss in the first half of 2026 and a cost base exceeding risk-adjusted revenue.

Interim CEO Zweli Manyathi stated that the decision is necessary for long-term sustainability, though the company acknowledges the impact on employees across all functions.

The bank also announced delays to its initial public offering until 2030 and plans to consolidate operations by reviewing IT, procurement, and lease costs.

While reassuring stakeholders of its financial stability, African Bank faces criticism over its aggressive cost-cutting approach following recent acquisitions like Grindrod and Ubank.

The union consultation process under Section 189A of the Labour Relations Act will determine the specifics of the restructuring, with the bank aiming to balance workforce reductions with maintaining liquidity and regulatory compliance.