EMCC European Monitoring Centre on Change



Geographic Location

Country: Spain


Sector: Financial services
Financial and insurance activities
64.1 - Monetary intermediation
Number Employed: 20589
Group: Bankia

Employment Effects

Announcement Date: 30-11-2012
Planned Job Reductions min: 4500
Planned Job Reductions max: 4500
Type of Restructuring: Internal restructuring
Employment Effect Start: 15-02-2013
Direct Dismissals: 6000
Other Job Reduction Measures: 1755

Additional Information

Bankia, the fourth largest bank in Spain, will dismiss over 6000 employees, 28% of its entire workforce. The number of branches will be reduced from 3,117 to approximately 1,900-2,000.

The restructuring plan was a key term of the agreement by which Bankia will receive 17,959€ million of European bail-out funds. According to the management, Bankia is expected to become profitable again in 2013, after record losses in 2012.

The negotiations with the unions are expected to start as soon as possible.

UPDATE February 2013: Bankia and the unions have agreed to reduce the number of dismissals. There will be 4,500 redundancies, with severance pay equal to 30 days per year worked. 39% of the job cuts will be early redundancies for employees over 54.

Bankia is a financial conglomerate formed in December 2010, merging the operations of 7 regional savings banks that were deemed too weak to survive the crisis. The bank was partially nationalized in May 2012 by the Spanish government in order to avoid its collapse.