New wave of staff reductions and wages in banks

Commercial banks are preparing for a new round of cuts in their network, staff and salaries in an effort to reduce their operational costs.

According to Kathimerini newspaper, bank managers estimate that over three years the network will be reduced by 20% while they expect proportional staff cuts, which translates to the closing of about 600 stores and they layoff of over 9,000 workers.

Next month the bank managements should have their business plans ready for the Troika, the Finance Ministry and the Bank of Greece.

Through mergers in recent months over 10 banks have gone to the hands of the four systemic banks in Greece which now have a network of more than 3,200 stores and around 46,000 employees.

The process of staff cutbacks has already started with the implementation of voluntary retirement, while officials also calculate a significant number that will occur through retirements.

Currently the Piraeus Group is running its program aimed at voluntary departure of at least 10%, or about 2,500 of its employees.

Alpha Bank is also preparing a voluntary retirement scheme alongside the redesign of its network, while the administration of the National Bank of Greece awaits the green light from Troika to implement its own retirement program.