Corporate restructuring has emerged as a strategic tool for enhancing organizational performance, particularly in response to economic challenges, technological advancements, and competitive pressures. Restructuring involves changes in organizational structure, operational processes, financial management, and workforce composition to improve efficiency and sustainability (Gok & Collins, 2023). In the banking sector, restructuring efforts such as mergers, downsizing, digital transformation, and process reengineering are critical for adapting to market dynamics.
United Bank for Africa (UBA) is one of Nigeria’s largest banks, with operations spanning various regions, including Sokoto State. UBA has undergone several restructuring phases, including digital banking enhancements, branch consolidations, and changes in leadership. These restructuring efforts aim to improve service delivery, financial stability, and competitive positioning. However, while corporate restructuring is often intended to boost performance, it can also lead to workforce disruptions, cultural resistance, and operational uncertainties (Obasi et al., 2024).
The relationship between corporate restructuring and organizational performance in Nigerian banks remains an area of debate. Some studies suggest that restructuring enhances efficiency and profitability, while others highlight risks such as employee dissatisfaction and market instability (Okafor & Eze, 2023). This study examines the impact of corporate restructuring on organizational performance in UBA, Sokoto State, focusing on financial performance, employee productivity, and customer service quality.
Corporate restructuring is often implemented to improve business performance, yet its actual impact on key performance indicators is not always predictable. In the banking sector, restructuring may lead to improved financial management and operational efficiency, but it can also disrupt employee morale and customer relationships (Afolabi et al., 2024). UBA’s restructuring strategies in Sokoto State—whether through workforce realignment, digital transformation, or leadership changes—require an assessment to determine their effectiveness in driving performance.
The problem is that while restructuring is a common strategy in the Nigerian banking industry, its effectiveness varies depending on implementation approaches and organizational culture. There is limited research on how UBA’s restructuring efforts have influenced its performance in Sokoto State. This study seeks to bridge this gap by evaluating the effects of corporate restructuring on UBA’s financial performance, employee engagement, and service delivery.
The study will focus on corporate restructuring strategies in UBA’s Sokoto State branch, evaluating their impact on financial performance, employee engagement, and customer satisfaction. Limitations may include access constraints to internal financial data and potential resistance from employees in discussing restructuring effects.
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Chapter One: Introduction
1.1 Background of the Study
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