Posted by: bigtalksingapore | November 8, 2008

DBS axed 900 jobs, creatively.

DBS announced that they will be axing 900 jobs, mainly in Singapore.

Though this is not surprising considering the global gloomy outlook, but it was still a surprise for many of us, especially DBS staff.

Imagine the DBS staff being asked to go for a surprise morning breakfast with Bee Hoon, Fried carrot cake, sandwiches and fried cuttle fish.
Maybe they think it’s a free breakfast to lift mood.
Then the Chief (Richard Stanley) announced plan for retrenchment (Attachment #1).
By the way, the fried cuttle fish was not true, I added that myself.

What a creative way to break the bad news to your staff.
The last time they retrenched people, they send email to fire staff.
And there was a lot of “Hoo Haa” about their inhumane way.
So this time round, they treat you to a breakfast before telling you that you may have to walk the plank.

A few points to take note below…

  1. The main reason for the retrenchment is of cos due to the global gloomy outlook and cut cost.
    But instead of just doing the retrenchment, they should have announce the retrenchment together with a major cut in top management pay.
    This will show to everyone that they are fair and responsible.
  2. Be sure to expect more retrenchment to come from other banks.
    The paper stated that DBS profit fell 38% from a year earlier, so it’s pretty bad.
    The other day when I go banking, I notice that the cashier girls pulling long faces.
  3. “Mr Stanley stressed the job cuts were not related to problems with its sales of Lehman Brothers – Linked strutured products.” Quoted from Attachment #2.
    You know what, there’s a old chinese saying that goes like this.


    I suspected that they may also be taking this retrenchment to let go of those Financial Advisor (FA) that may have “Mis-sell” the mini bond to customers.
    By letting go of these people in this retrenchment, it has several advantages below
    It will not be a bad record on these FA. They can find the same job elsewhere.
    Bank don’t want to fire too many of these FA, it would be like slapping their own face.
    These FA will keep their mouth shut about the whole affair.
    At least the mini-bond customer will not see these FA in the bank anymore and hopefully calm down a bit.

  4. “Mr Stanley said:Let me assure you that DBS would never knowingly do anything that will hurt our clients.” Quoted from Attachment #2.
    Well, let me say this.
    Sub prime loan got exposed last year.
    For more than one year, they never took the initiative to check if their clients investment was affected and inform them.
    Gee man, can you believed that ? They never checked ?
    It looks like a case of “Open one eye, close one eye” to me.

Attachment #1: Today, 8 Nov 2008, Page 1


Attachment #2: Today, 8 Nov 2008, Page 4


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