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 64.1 - Monetary intermediation
1,000 jobs Number of planned job losses
Announcement Date
12 April 2016
Employment effect (start)
12 April 2016
Foreseen end date
31 December 2020
Description
Landesbank Baden-Wuerrtemberg (LBBW) announced to cut 1,000 jobs within the next four years. The bank wants to improve quality and efficiency. Mostly affected are the areas of retail banking and credit processing. In each branch about 500 jobs will be cut. Redundancies are due to high costs of regulation, digitisation and historically low interest rates. Therefore, LBBW will invest 400 million Euro in the expansion of digital offering. Currently, the Cost-Income-Ratio amounts 70.9 percent whereas the bank wants to reach a figure below 60 percent.
The management emphasises the importance of socially acceptable redundancies. Employees can opt for retirement or move to a transition company and a total of 35 million Euro are provided for severance payments.
Landesbank Baden-Wuerttemberg, headquartered in Stuttgart, currently employs 11,120 employees.
Sources
13 April 2016: Stuttgarter Zeitung
12 April 2016: Stuttgarter Nachrichten (online)
Citation
Eurofound (2016), Landesbank Baden-Wuerttemberg, Internal restructuring in Germany, factsheet number 86987, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/86987.
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