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 64.19 - Other monetary intermediation
400 jobs Number of planned job losses
Announcement Date
1 November 2012
Employment effect (start)
10 December 2012
Foreseen end date
30 June 2014
Description
Hipotēku Banka, a financial service provider, has announced that it will make 400 people redundant. In the beginning of November 2012 the state owned bank informed the public employment agency of a collective redundancy starting mid-December 2012 and ending mid-2014.
In 2011, state owned Hipotēku Banka was reorganized and its commercial arm was sold to Swedbank and SEB bank. The current restructuring affecting 70% of its employees follows this sale.
Hipotēku Banka currently employs approximately 550 employees. It is reported that redundancies will be implemented gradually and all redundant workers will receive compensation in accordance with the law. The bank has also stated that it plans to help redundant workers in finding new jobs. The state employment agency states that it might have 200 open vacancies suitable for the employees.
The trade union has stated that negotiations with Hipotēku Banka have reached deadlock and that it is considering industrial action.
Sources
2 November 2012: Latvijas Avīze
24 September 2012: diena.lv
1 November 2012: db.lv
2 November 2012: Dienas Bizness
Citation
Eurofound (2012), Hipotēku un Zemes Banka, Internal restructuring in Latvia, factsheet number 74506, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/74506.
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