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
2,900 jobs Number of planned job losses
Announcement Date
21 July 2016
Employment effect (start)
Foreseen end date
Description
Banco Popular plans to implement an employment adjustment plan that will affect 2,500 workers (15% of its entire workforce) and will result in the closure of 300 offices. This will affect workers from both Spain and Portugal. However, the bank has stated that the numbers are not definitive. Moreover, the the bank has stated that they plan to implement the measure in large part by means of voluntary redundancies. Accordingly, the number of workers dismissed will also depend on the number of workers who decide to take part. The bank frames this measure as being within a larger restructuring plan that began to be implemented in 2012.
Banco Popular has suffered less dramatic restructuring, particularly in regards to employment adjustment, than many other Spanish banks. In 2014 150 workers lost their jobs. As a consequence, experts maintain that drastic measures are needed to restructure the bank.
Update 7-10-2016
Banco Popular is speeding up the process of implementation of the employment adjustment. On 6 October 2016 the bank created a bargaining table to negotiate the conditions of the measure with the trade unions. The measure being discussed will affect 2,900 workers and will imply the closure of 302 branches. It will be mostly implemented by means of early retirement plans; the bank foresees that 62% of the workers dismissed will take up the offer.
In the first meeting of the bargaining table, the trade union CCOO has rejected the dismissals figure and has requested that the bank suspends the payment of the dividends. According to the trade union, efforts requested to the workers have to be shared by share holders and executives.
Update 2-07-2017
The employment adjustment plan proposed by Banco Popular in 2016 will finally be implemented as of June 2017, affecting 2,592 employees (17% of the total workforce). The employment adjustment plan commenced three weeks after Banco Popular was bought by Banco Santander. In the framework of the restructuring process, the bank announced its intention to dismiss the entire workforce (2,900-3,000 workers) but this was reduced to 2,592 employees. Workers aged 55 and over have been subjected to early retirement plans.
Banco Santander has not taken yet a decision on the future of the staff of Banco Popular who have been integrated into Banco Santander
Eurofound (2016), Banco Popular, Merger/Acquisition in Spain, factsheet number 88310, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/88310.
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