DIGITAL DRIVE TURNS SOUR FOR STAFF AS EQUITY BANK LAYS OFF 1,200

Equity Bank has announced plans to lay off 1,200 employees as part of a sweeping restructuring effort aimed at streamlining operations and enhancing its digital banking services.

In a statement released on Thursday, the lender said the redundancy notices were issued following an internal review of its workforce and long-term strategy.

“The decision has been made to align our resources with the future of banking, which is increasingly digital and customer-driven,” the bank said. “While this was a difficult decision, it is necessary to ensure the sustainability and competitiveness of the institution.”

The bank added that affected staff will receive severance packages in accordance with labor laws and will be supported with counseling, financial advice, and job placement assistance.

Union Protests Layoffs

The Banking, Insurance and Finance Union (BIFU) has strongly criticized the move, accusing Equity of abandoning its workers without adequate consultation.

“This is a massive blow to employees and their families. The bank must halt the process and engage in proper dialogue,” said BIFU Secretary-General Elijah Nyangwara during a press briefing.

The union has threatened legal action and possible industrial protests if the layoffs proceed without a negotiated settlement.

Shift Toward Digital Banking

Equity Bank has been aggressively digitizing its services in recent years, with more than 95% of customer transactions now conducted via mobile and online platforms. Analysts say the layoffs reflect a broader trend in Kenya’s banking sector, where automation and digital innovation are reducing reliance on physical branches and traditional roles.

“What we’re seeing is a transformation of the workforce. Unfortunately, this often comes with painful adjustments,” said financial analyst Mercy Karani.

Equity’s announcement follows similar downsizing moves by other major banks in Kenya, underscoring the sector’s rapid evolution.

What Lies Ahead

Despite the backlash, Equity says it remains committed to investing in technology, data-driven services, and customer experience.

The bank has urged stakeholders to support the transition, saying the changes are essential for long-term growth and sustainability in a competitive.