Baltic, Banks, Financial Services, Labour-market
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Friday, 19.04.2024, 20:13
Luminor doesn’t plan any more job cuts
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"No, we don't plan any more. We hope to complete our
optimization plan in the first or second quarter of 2020, and then we are
looking at the third stage of growth when we will compete and we want to grow
to be able to offer new solutions and instruments for the market," told Andrius Nacajus.
Earlier in the day, the bank announced plans to cut hundreds
of jobs, including 420 out of 1,300 in Lithuania. Nacajus confirmed that some
of the bank's branches would be closed, without elaborating.
"We regularly assess the effectiveness of our retail
network. We did that last year and will continue it this year. I cannot specify
which branches we plan to close this year as we are now coordinating the plan
with both the works council and supervision institutions," Nacajus said.
In his words, cuts will affect various positions across the
bank.
"Probably, one exceptional thing is that it will
professionally affect executives more, and one of the changes we are doing is
that we are expanding the so-called executive sphere of influence and expanding
teams, proportionally reducing the number of executives more than that of
specialists," Nacajus said.
As US private equity giant Blackstone Group is taking over Luminor,
Nacajus said added that the lay offs were not determined but backed by the
future shareholder.
"These changes were not determined by Blackstone, they were planned during the
merger: the first, second and third stages were already planned during the very
merger, and our future shareholder backed them after being acquainted,"
Nacajus told.
After completing its merger in the Baltic states and
launched the change of its operating model,
Luminor announced its plans on Monday to lay off 130 employees in Estonia
and 250 in Latvia. Luminor currently has around 3,000 people working in the
three countries, including 1,300 in Lithuania.
Created in 2017 through the merger of Nordea's and DNB's operations in the Baltics, Luminor continues to operate in all three countries through
its Estonian-registered bank and branches in Latvia and Lithuania,
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