Nova ljubljanska banka (NLB)

Type
Internal restructuring
Country
Slovenia
Region
Slovenija; Zahodna Slovenija; Osrednjeslovenska
Location of affected unit(s)
Ljubljana
Sector
Financial / Insurance/ Estate
64 - Financial service activities, except insurance and pension funding
64 - Financial service activities, except insurance and pension funding
64 - Financial service activities, except insurance and pension funding
400 - 550 jobs
Number of planned job losses
Job loss
Announcement Date
27 December 2010
Employment effect (start)
31 January 2011
Foreseen end date
30 June 2011

Description

Nova Ljubljanska Banka (NLB), the largest Slovenian bank, partly owned by the state and partly by the Belgian KBC bank, will cut its employment by 450-600 people out of existing 4,000. The bank has to implement mass redundancy measures because of severe financial troubles which occurred due to economic recession as the outstanding debts of its clients increased. As a result the bank needs additional capital. The owners request a thorough restructuring of the bank to cover the costs of additional capital. Reduction of employment is part of the restructuring programme.

UPDATE:According to newspapers Delo (28-02-2011) and Finance (01-03-2011), the number of planned job cuts in NLB has been revised from 450-600 to 400-550.

Sources

  • 1 March 2011: Finance
  • 28 February 2011: Delo
  • 27 December 2010: Finance

Citation

Eurofound (2010), Nova ljubljanska banka (NLB), Internal restructuring in Slovenia, factsheet number 71379, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/71379.