Mergers in banking sector could translate to 7,000 jobs eliminated next year

Three mergers in the banking sector planned for next year could result in the loss of almost 7,000 jobs. Bank Handlowy has officially announced that its merger with Citibank (Poland) will entail elimination of positions. Bank Handlowy president Cezary Stypulkowski confirmed that 400 employees will become redundant, and next year 1,000 more can expect to lose their jobs. At first the cost of severance packages will be high, but management of the merged banks is expecting to decrease costs in the long term by 12%. Another large wave of redundancies is expected after the merger of Wielkopolski Bank Kredytowy (WBK) and Bank Zachodni (BZ) in May. Approximately 2,000 persons could lose their jobs. Significant layoffs are likewise possible if Bank Przemyslowo-Handlowy (BPH) and Powszechny Bank Kredytowy (PBK) merge. In that case 3,500 employees may be let go. Such high numbers of redundancies in the banking sector result not only from consolidation, but also from implementation of new technologies and alternative distribution channels that lower operating costs and require fewer operators.(Prawo i Gospodarka, p.1,9)