CIMB Group and CIMB Niaga Completes Mutual Separation Scheme Exercise
Kuala Lumpur: CIMB Group Holdings Berhad and PT CIMB Niaga TBK today announced that they have completed their Mutual Separation Scheme (MSS) exercise and a total of 3,599 applications (1,891 from Malaysia and 1,708 from Indonesia) were approved, representing rationalisation of 11.1 percent of the total workforce in Malaysia and Indonesia.
While the Group will incur approximately RM 443.3 million in MSS cost, the resultant savings from the headcount reduction is estimated to be RM 291.6 million per annum, which translates to an 18.2 months payback.
"The MSS was introduced as part of our continued efforts to enhance efficiency and productivity within the Group. With the completion of the MSS, we are on track to meet the targets set in our cost-to-income plans outlined in our T18 strategy," said Tengku Dato' Zafrul Tengku Abdul Aziz, Group Chief Executive, CIMB Group.
"The MSS exercise has also benefited successful applicants and I would like to thank them for all their contributions and wish them all the best in their future endeavours," added Tengku Zafrul.