Chairman of Bank Leumi, David Brodt
Photo: Ben Lam
Galia Maor
Photo: Zvika Tishler
Leumi to cut 800 jobs by 2014
Bank's reorganization plan to see significant downsizing. Bank officials says decrease in manpower will be 'mostly through retirement, not dismissal'
Bank Leumi announced on Sunday a reorganization plan that will span over three years, to cut 800 jobs by 2014. In 2012, some 300 employees are expected to retire from the bank. Bank officials said that the expected cutback will be based on retirement and the minimizing of new hiring, and not through termination.
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According to the bank, the program is based on the recommendations of outgoing CEO Galia Maor. The plan will save the bank between NIS 350-400 million in operational expenditures, approximately 1% of the annual return of regular operational revenue.
The plan includes an expected cut of 800 jobs by 2014 and the outsourcing of back-office activities from the branches to specialized centers; a reduction of 10% of branch space by 2014; a decrease in acquisition expenses by 10% within two years by moving to communal use of operational infrastructure; and a decrease in hiring external consultants.
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