The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Financial Service Activities, Except Insurance And Pension Funding 64 - Financial service activities, except insurance and pension funding
900 jobs Number of planned job losses
Announcement Date
27 August 2009
Employment effect (start)
27 August 2009
Foreseen end date
Description
The Austrian bank institute Österreichische Volksbank AG (ÖVAG) is to cut 900 staff throughout Europe. This was released on 27 August 2009. Accordingly, the whole group had to face a loss before tax of € 139 million in the first half of 2009. The main cause for these losses was identified in problematic risk management with regard to shady credits. Risk management with regard to credits has had to be re-endowed at € 294 million. As a consequence of this and in view of the current economic downturn, which renders an increasing total volume of loan losses likely, the bank plans to reduce its workforce by 900 staff in total in the medium term. 200 of the 900 employees affected will be workers employed in Austria. The ÖVAG group currently employs about 8,600 staff in Europe and about 2,035 in Austria.
Sources
27 August 2009: Börse-Express
Citation
Eurofound (2009), ÖVAG, Internal restructuring in European Union, factsheet number 69615, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/69615.
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