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
250 - 350 jobs Number of planned job losses
Announcement Date
21 February 2017
Employment effect (start)
Foreseen end date
30 June 2017
Description
The Portuguese bank Novo Banco will reduce the number of employees by the end of June 2017. The staff reductions will be done through early retirements (affecting between 150 and 200 workers aged 58 years or more) and voluntary terminations of contracts (affecting between 100-150 workers). In total, between 250 and 350 workers are expected to have left the bank by the end of June 2017.
Novo Banco is the so-called ‘good bank’ that emerged from the €4.9 billion rescue of Banco Espirito Santo in 2014. The restructuring process is part of a set of obligations undertaken by the Portuguese government with the European Commission in order to sanction the restructuring aid given to the bank. The aim is to make the bank profitable again and facilitate its sale as the government looks to recoup the €3.9 billion it lent to the rescue fund.
On 10 July 2017, the European Commission approved the planned acquisition of Novo Banco by the US based Lone Star Funds, within the framework of the regulations on mergers in the European Union. The Commission will continue negotiations with the Portuguese authorities on the bank's viability and the State aid.
The ERM reported on a previous round of job reductions at Novo Banco in 2016.
In December 2016, the Novo Banco Group had 5,691 employees in Portugal.
Sources
21 February 2017: Jornal de negocios
21 February 2017: Público
10 July 2017: Público
1 March 2017: Reuters
Citation
Eurofound (2017), Novo Banco, Internal restructuring in Portugal, factsheet number 91354, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/91354.
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