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
496 - 1,400 jobs Number of planned job losses
Announcement Date
22 December 2011
Employment effect (start)
22 December 2011
Foreseen end date
6 January 2012
Description
The former commercial, now nationalized Lithuanian bank Snoras will dismiss around 1,400 employees by January 6, 2012. The main cause of dismissals is the bankruptcy of the bank. On 16 November 2011, the Government of the Republic of Lithuania took over the shares of the financially troubled and insolvent commercial bank Snoras. Activities were temporarily suspended.
On 24 November 2011, the Bank of Lithuania declared the bankruptcy of Snoras and decided to initiate the bankruptcy proceedings. An inspection had revealed various problems at the bank including poor asset quality and the lack of correct operating data. Snoras was declared bankrupt on 19 December 2011. Employees received the layoff notice within the following 15 working days. Redundant employees are entitled to severance pay amounting to two months' salary.
According to the newspaper Lietuvos Rytas, around 904 people were re-employed at the nationalized Lithuanian bank Snoras at the end of 2011. Around 500 people will continue working until the end of February 2012, and 400 people until the end of March 2012.
Sources
22 December 2011: Verslo zinios
16 January 2012: Baltic News Service
Citation
Eurofound (2011), Snoras, Bankruptcy in Lithuania, factsheet number 72910, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/72910.
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.
