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
4,350 jobs Number of planned job losses
500 jobs Number of planned job creations
Announcement Date
5 July 2017
Employment effect (start)
6 July 2017
Foreseen end date
31 December 2021
Description
Monte dei Paschi di Siena, one of the largest Italian banking group, is to reduce the staff at its Italian units by 4,350 persons.
The decision is part of a restructuring plan intended to exit a long period of crisis (see Monte dei Paschi di SienaIT-2013, Monte dei Paschi di SienaIT-2016). The plan, developed under EU rules on bank recovery and resolution, entails a reorganisation of the business model, the disposal of non-performing loans, a reduction of branches, a cap on senior managers’ pay, and a precautionary recapitalisation by the Italian State.
For what concerns the workforce, the plan envisages 5,500 exits over the 2017-2021 period. As many employees already left the company over the latest months, forthcoming exits should actually be 4,850, 4,100 thereof to be implemented with incentives to dismissals, and the remaining share (750) by means of retirements. The company also envisaged 500 hirings, lowering the number of net exits in Italy to 4,350.
Further 450 redundancies should be implemented in the bank’s branches located abroad.
Unions have started negotiations with the management on dismissals, calling for exits to be implemented on a voluntary basis.
Sources
1 June 2017: Il Sole 24 Ore
4 July 2017: European Commission - press release
5 July 2017: Monte dei Paschi di Siena - press release
5 July 2017: Il corriere della sera
Citation
Eurofound (2017), Monte dei Paschi di Siena, Internal restructuring in Italy, factsheet number 91543, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/91543.
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