EMCC European Monitoring Centre on Change

Banca Monte dei Paschi di Siena

Company/Organisation:
Banca Monte dei Paschi di Siena

Geographic Location

Country: Italy

Company

Sector: Financial services
Financial and insurance activities
64 - Financial service activities, except insurance and pension funding
Number Employed: 28000
Group: Banca Monte dei Paschi di Siena

Employment Effects

Announcement Date: 13-11-2003
Planned Job Reductions min: 3600
Planned Job Reductions max: 3600
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-01-2003
Foreseen End Date: 01-12-2004
Direct Dismissals: 1700
Other Job Reduction Measures: 1900

Additional Information

The Monte dei Paschi bank is one of the leading banking groups in Italy. The 2003-2006 industrial plan of the Monte dei Paschi bank of Siena, which was approved on 18 December 2003, envisages a reduction of employment in central structures and back-office activities. Some 3,600 jobs will be lost in these areas. Around 1,900 workers will be trained and redeployed in sales activities. In practice, there will be 1,700 redundancies, 600 of which have already been implemented in 2003. These measures will allow a reduction in labour costs by 1.9% per year. The reorganisation will involve three sectors of activity (retail, corporate and private) and 150 new outlets will be opened in Italy. This part of the plan will be implemented by the end of 2004. The plan also includes a general downsizing of foreign operations: offices abroad will be either closed or downsized. Non strategic assets will be sold, as well as stakes in foreign banks.