How the EIB volunteered ended – The next steps

By Leonidas Stergiou

After a five-day extension, the National Bank’s voluntary exit program was completed on December 20, with the departure of just over 400 employees. With the completion of this scheme, a total of 600 people left the National Bank in 2021. It is recalled that by September another 200 people had left, as a continuation of a voluntary exit program that started in 2019 and was reactivated in November 2020. In total, 900 people left that program. Thus, it is estimated that the number of employees will be reduced to around 7000 (from 7,822 in 2020), while its stores will have been reduced to 327 from 371 in 2020.

The CEO of the National Bank, Mr. Pavlos Mylonas, did not rule out the possibility of a new voluntary exit in 2022, answering a relevant question from analysts during the presentation of the results for the nine months of 2021. This is a common question to all banks, as Greek banking institutions present higher costs (in relation to revenues), compared to the Eurozone average, as, moreover, results from the EBA data.

Based on the business plans of the four systemic banks, their goal is to reduce the number of employees below 6,000, something that Alpha Bank has already achieved, after the last volunteering that was completed in the fall of 2021. At the same time, the restructuring program is underway. of the network, by reducing the number of branches to 300 per bank, but by redesigning them to meet the new banking concept and the digital transformation. The goal for the number of branches has been achieved by Eurobank, which is already redesigning them, reflecting the new “physical” banking service in the framework of the strategic plan Eurobank 2030.

The plans

According to the data from the balance sheets and presentations of the banks, in 2021 it is estimated that it will close with a total number of employees around 28,300-28,500, with the aim of reducing this number below 24,000 by the end of 2023. This leads to the calculation for further staff reductions of at least 4,000 employees by the end of 2023.

The programms

It is noted that in addition to voluntary exits, staff reductions come from physical retirement (retirements, etc.) but also from sales or restructuring of activities (eg red loan activities, cards, etc.). Restructuring estimates that bank employees have fallen by 2,600 in the last two years. At the same time, however, banks are hiring specialized executives, mainly with knowledge in digital switchover, banking transformation and strategic planning.

The redundancies to date, estimated at 5,150 employees since the beginning of 2020, come from voluntary redundancies, with total compensation ranging from 150,000 euros to 200,000 euros. These programs mainly target employees of stores, network addresses and other administrative services over 40 years. Programs usually offer options for immediate retirement or long-term paid leave and several increments depending on age and years of service. In addition, they offer insurance coverage, medical coverage and continuation of loans from their banks on favorable terms as bank employees. Training packages are also provided.

The previous ones

Just before the completion of the volunteering in Ethniki, the program of Piraeus Bank had preceded. It was the second voluntary departure scheme since the one in June. Piraeus Bank is estimated to reduce its staff to around 7,500 employees, with the number of branches limited to close to 400 (from 484 in 2020), with the aim of reducing them further.

Earlier, Alpha Bank’s voluntary layoff program was completed, which ended in October with the departure of 600 employees. With this program, Alpha Bank renewed its management capacity by 20% and was the first systemic bank to reduce the number of employees below 6,000 and branches to 310.

Eurobank has achieved the goal of 300 branches, with a staff of over 6000 employees, after the last voluntary retirement program in October 2020 (750 employees left).

Read also:

* The numbers for bank volunteers – Why they are made

* EIB: New voluntary retirement plan – All conditions

* New volunteer program from Piraeus Bank

* Alpha Bank: 600 applications in the voluntary exit program

* National Bank: Profit increase after taxes 34%, to € 622 million in the first half

* The whole voluntary exit program of Piraeus Bank

* Attica Bank: Proceeds to a voluntary exit program

* Eurobank voluntarily reduced 10% of its staff

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