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 64.19 - Other monetary intermediation
100 jobs Number of planned job losses
Announcement Date
14 April 2021
Employment effect (start)
1 January 2021
Foreseen end date
31 December 2021
Description
The Norwegian bank SpareBank 1 SMN will close six smaller offices and cut 100 jobs by the end of 2021. The job cuts are part of an internal restructuring called One SMN where SpareBank 1 SMN will see employees work in larger offices where all business areas will be co-located with the objective to increase digitisation, create more efficient work processes, better services and reduce costs. The overall goal is to increase the results of the bank by NOK 400 million by 2023. The bank’s offices in Eide, Malm, Meråker, Øvre Årdal have already closed, while the bank’s offices in Frosta and Overhalla will close later in 2021. The downsizing will take place voluntarily and employees can apply for severance packages (seven to 19 monthly salaries paid out depending on age and seniority) negotiated by the union official representative.
The union representative said that the restructuring had been difficult for employees, especially during the COVID-19 pandemic. Nevertheless, the trade union supports the downsizing measures, which have been agreed with the bank. In addition to the severance packages mentioned above, the trade union has also negotiated a student grant for those employees who decide to leave the bank. ‘It provides good opportunities to learn something new for those who choose to leave the bank, and this measure is in addition to the severance package’ according to union representative Lindseth.
Sparebank 1 SMN is based in central Norway and is part of the SpareBank 1 Alliance. The head office is in Trondheim and the group, including its subsidiaries, has about 1,500 employees.
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.
