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The Nigerian Exchange Group (NGX) has relieved some staff members of their jobs days after its annual general meeting (AGM) which was held in Lagos.
Multiple sources told Naijaonpoint that over 40 staff members of NGX Group were affected, with top shots in the organization asked to go.
However, sources at the NGX informed Naijaonpoint that the official figures were 25 full-time employees.
The affected staff members, according to sources, include regulatory officers, compliance managers, audit managers, the investment team, the chief finance officer, and the general counsel of NGX, among others.
The overhaul was led by PricewaterhouseCoopers (PwC), a multinational professional services firm, Naijaonpoint understands.
The PwC carried out a staff audit and made recommendations to Group Managing Director/Chief Executive Officer of Nigerian Exchange Group, Mr Temi Popoola, who implemented the downsizing, a source said.
The ex-staffer said after the AGM, same day around 5 pm, a virtual meeting was held with all staff members of the group, where the Group Managing Director said that he had got feedback from PwC and that he was going to scrap offices and allow staff members that were no longer relevant to the organization to go.
Mr Popoola noted that he was going to send termination letters to affected staff the same day and have their emails blocked for access, the ex-staff member said.
Another affected staff member said the decision of the NGX to downsize was greeted with pessimism, noting that there were no clear criteria for the dismissal.
Currently, the affected staff members are demanding reinstatement, emphasizing their contributions and lack of justification for their terminations.
Some are seeking financial compensation, while others are advocating for reinstatement.
The NGX Group did not comment officially on the downsizing.
Official information contained in the company’s financial statement reveals that NGX Group (the parent company of the NGX Exchange Ltd) has about 132 staff members, down from 139 a year earlier.
Downsizing is not new as it is common in several organizations. Recruitment experts say downsizing is sometimes necessitated by economic downturns, lack of productivity, and redundancies, among others.
Sources with knowledge of the matter also opine that the move was informed by directors of the NGX who lamented the high operating costs at NGX, demanding the implementation of recommendations for corporate restructuring.
Sources with knowledge of the matter also opine that the move was informed by directors of the NGX who lamented the high operating costs at NGX, demanding the implementation of recommendations for corporate restructuring.
According to one source, roles that were previously designated for Senior Managers were downgraded to manager roles to align with role expectations.
Other sources suggest that consultants also recommended a Group structure for the NGX, which bloated the workforce and overhead. “The same consultants are now the ones asking for a downsizing” the source opined.
The NGX Group reported a profit after tax of N5.2 billion in 2023, a ninefold increase from the N591.5 million posted a year earlier. Most of the profits came from its crown jewel, CSCS Plc. The NGX owns 44% of the company.
Update: This article has been revised to reflect new information. Contrary to the earlier report of 40 staff members being dismissed, sources at NGX have confirmed the actual number is 25.