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
130 jobs Number of planned job losses
Announcement Date
5 February 2019
Employment effect (start)
5 February 2019
Foreseen end date
31 December 2019
Description
Luminor Group announced its plans to simplify its operating model and thus cut down its staff in all three Baltic countries from 3,000 to 2,200 during 2019. In Estonia, the restructuring affects 130 jobs in Luminor Bank AS - this accounts for 21% of current jobs in the bank. The representative of the Luminor Group stated that the need for the lay offs was known in advance already 1.5 years ago, when DNB and Nordea bank were joined and Luminor was established as the aim of the joining process was also to make the company more efficient and competitive. In the entire group, mostly similar jobs and management levels will be reduced. For example, there were three retail banking managers in the group, after the redundancy there will be only one manager covering all three countries. Also, their technological platforms will be harmonised all over the countries by simplifying their product and service portfolio.
Luminor Bank AS has turned to the Estonian Unemployment Insurance Fund (EUIF) to receive collective dismissal service for themselves, but especially for the employees. Already in March, the EUIF will meet with the employees to introduce other career prospects, EUIF services etc. Luminor also cooperates with the local trade unions. According to the EUIF, there are plenty of jobs available currently in Estonia, but did admit that most of these are blue-collar jobs.
Eurofound (2019), Luminor Bank AS, Internal restructuring in Estonia, factsheet number 96736, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/96736.
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