No Retrenchment in CIMB

Despite the swirling rumors about a possible retrenchment and major layoffs involving CIMB, the financial group has vehemently denied such move, and insists that it is on track in implementing their business and rationalization plan.

2 weeks back, CIMB announced its decision to close about 60 of its branches nationwide, and consolidate the operations of the closed branches into others. These 60 branches are considered surplus to the bank’s operation.

With the closing of the branches, the total CIMB branches nationwide will be reduced to about 300.

According to the officials, staff working in the affected branches will be redeployed, and may need to undertake different roles or responsibilities.

CIMB has also been urging its employees to go for extended and long leave, lasting between one month and six months, as part of the company’s “Staff Rejuvenation Program.” It expects to save up to RM60 million of operational expenditures through the program implementation.

From the moves, it is quite clear that the bank’s financial muscles were being flexed by the prolonged global economic crisis, which may take years to recover. But some would say they are necessary technical ploys before the company embarks on a large scale expansion once the economy recovers.

CIMB is currently Malaysia’s second largest financial group behind Maybank.