Internal restructuring
European Union
Location of affected unit(s)
Portugal, Spain
Financial Services
Financial And Insurance Activities
Financial Service Activities, Except Insurance And Pension Funding
64 - Financial service activities, except insurance and pension funding

625 - 1,000 jobs
Number of planned job losses
Job loss
Announcement Date
1 March 2016
Employment effect (start)
7 March 2016
Foreseen end date
31 December 2016


Portuguese bank Novo Banco has announced 625 jobs will be lost from its Portuguese and Spanish operations in this restructuring. This aims to reduce operating costs by around 150 million euros and return to profit, as part of a deal agreed with Brussels. One of the causes of this decision being taken, along with losses in 2015 of just under one billion euros, was a failed attempt to sell the bank. Novo Banco's profit making Asian operations will be unaffected.

The Spanish subsidiary has negotiated with trade unions to cut 125 jobs, with higher severance pay than statutorily required and benefits for workers aged 55-60. Portugal's employees will be a combination of direct dismissals and terminations by mutual agreement, and negotiations with the General Union of Workers (UGT) are ongoing.


  • 1 March 2016: Reuters
  • 28 February 2016: Macau Business Daily
  • 15 April 2016: CCOO Servicios
  • 22 March 2016: i online


Eurofound (2016), Novo Banco, Internal restructuring in European Union, factsheet number 87304, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/87304.