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
625 - 1,000 jobs Number of planned job losses
Announcement Date
1 March 2016
Employment effect (start)
7 March 2016
Foreseen end date
31 December 2016
Description
Portuguese bank Novo Banco has announced 625 jobs will be lost from its Portuguese and Spanish operations in this restructuring. This aims to reduce operating costs by around 150 million euros and return to profit, as part of a deal agreed with Brussels. One of the causes of this decision being taken, along with losses in 2015 of just under one billion euros, was a failed attempt to sell the bank. Novo Banco's profit making Asian operations will be unaffected.
The Spanish subsidiary has negotiated with trade unions to cut 125 jobs, with higher severance pay than statutorily required and benefits for workers aged 55-60. Portugal's employees will be a combination of direct dismissals and terminations by mutual agreement, and negotiations with the General Union of Workers (UGT) are ongoing.
Sources
1 March 2016: Reuters
28 February 2016: Macau Business Daily
15 April 2016: CCOO Servicios
22 March 2016: i online
Citation
Eurofound (2016), Novo Banco, Internal restructuring in European Union, factsheet number 87304, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/87304.
Digitisation and automation technologies, including artificial intelligence (AI), can affect working conditions in a variety of ways and their use in the workplace raises a host of new ethical concerns.
The retail banking sector is fertile ground for studying the impacts of digitalisation on work and employment. Financial services are increasingly provided online, without the intermediary of customer-facing institutions.
European labour markets have recovered strongly from COVID-19. By the end of 2021, little more than 18 months after the start of the pandemic, employment rates in the EU were almost at pre-crisis levels.
