EMCC European Monitoring Centre on Change

Bank Austria

Company/Organisation:
Bank Austria

Geographic Location

Country: Austria

Company

Sector: Financial services
Financial and insurance activities
64 - Financial service activities, except insurance and pension funding
Number Employed: 9900
Group: UniCredit

Employment Effects

Announcement Date: 28-11-2013
Planned Job Reductions min: 1550
Planned Job Reductions max: 1550
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-01-2014
Foreseen End Date: 31-12-2015
Other Job Reduction Measures: 850

Additional Information

Bank Austria is to shed up to 850 jobs within the next two years, reducing its personnel to 9,000 staff members by the end of 2015.

This cost-cutting programme comes on top of the previous restructuring measure named “Thor”, announced in 2011, that aimed at 800 job cuts by the end of 2015. According to recent media reports, some 400 job cuts of that programme have thus far been implemented.

The bank has announced to implement the job cuts via natural attrition. It is likely however, that dismissals will have to be made too. The bank plans to save more jobs through part-time work of older employees.

Update, 21-12-2015: Bank Austria announced to retain its retail banking segment but will reduce its branches from currently 190 to 120. According to newspaper reports, an additional 700 employees will be affected by further job cuts. Apart from a reduction in staff, occupational pensions will be transferred to the states mandatory pension scheme for current employees. An agreement between management and trade unions has been negotiated and is expected to be signed in the upcoming days.