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2008-05-14 18:00:00 CEST 2008-05-14 18:00:27 CEST REGULATED INFORMATION Glitnir banki hf. - Company AnnouncementGlitnir aligns its operation to a changed market environment - Organisational layoffs in Iceland completedReykjavík 14 May 2008 Glitnir Bank has today completed its organisational layoffs in Iceland, which has led to a reduction in number of employees by 88. Those involved come from all levels and divisions within the Bank's operations. This means that the number of employees in Iceland will decrease to ca. 1000, which is similar to the size of the work-force at the beginning of 2007. The turbulence in the international financial markets has, in a short period of time, changed the operational environment for financial services firms worldwide. Icelandic financial companies have not been unaffected by these developments. Since the autumn of 2007, Glitnir has demonstrated its flexibility by responding to the changed operational environment in the international financial markets, by reducing costs at home and in its operations internationally. Glitnir's international operations re-organised Since the beginning of 2008, Glitnir has reorganised its Nordic and European operation to increase focus and improve operational efficiency. * The Bank's office in Denmark was closed in February and a part of its operations transferred to London and Reykjavik with a reduction of 15 job positions. * The Bank's operation in Norway was merged and reorganised. This led to a reduction of 70 job positions. * Glitnir announced its exit from the commercial property financing business operated out of Luxembourg in April, freeing up liquidity of up to EUR 1 billion over the next 12 months and a reduction of 10 job positions * The Bank's operation in London was reorganised at the end of April with a reduction of 10 job positions. Cost-cutting initiatives in Iceland Glitnir Bank has also been seeking means to lower costs and increase efficiency in its Icelandic operation. A general cost reduction scheme was initiated at the end of last year, new hiring's have been kept minimum and vacant job positions have not been filled. In April the Bank's two branches in Kopavogur were merged into one. Glitnir will now merge two of its branches in Reykjavik, emphasizing specialized services for SMEs out of the merged branches. In 2007 Glitnir hired 319 employees in Iceland, the highest number in the Bank's history. The Bank's strategy was based on plans for continuing brisk growth; however external circumstances changed swiftly. Consequently, the Bank has decided to reduce the number of employees in Iceland by 88. The employees in question come from different levels, departments and divisions across the bank. The group consists of equal number of males and females, average age is ca. 40 years, and 2/3 of the employees have worked for the Bank for less than five years. As a result of these actions, job positions at group level have been reduced by 255 due to lay-offs and retirement. Most of those affected will leave their positions immediately. The Bank has informed the appropriate authorities and the Confederation of Icelandic Bank and Finance Employees about the redundancy programme. The reduction means that that the number of employees in Iceland will be close to 1000, similar to what it was in the beginning of 2007. Lárus Welding, CEO of Glitnir Bank:"This difficult decision marks the end of the organisational layoffs cutting scheme which was initiated in the end of 2007. The operational environment for financials has changed in a very short period of time and it's important that all companies concerned demonstrate flexibility and the ability to reduce costs under these trying circumstances. These are painful measures and which entails that good people will be leaving us and I wish them all the best for the future. There has always been a strong demand for Glitnir people in the job market and I am confident that those that are leaving will find exciting future employment opportunities. Circumstances and the financial market environment have changed which makes it important to show flexibility, to create a leaner organisation and to strengthen our competitive position. I am confident that this will make the bank even better positioned to seize opportunities in the current environment and in the future." Further information: Bjørn Richard Johansen, Managing Director, Global Corporate Communication Mobile: +47-47 800 100, E-mail: brj@glitnir.no Már Másson, Head of Corporate Communications, direct: 440-4990, mobile: 844-4990, e-mail: mar.masson@glitnir.is |
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