Bank Hapoalim (TASE: POLI) has begun a new streamlining plan. Sources inform "Globes" that the bank, which has implemented several streamlining plans in recent years, is planning further measures this year that will include at least 600 layoffs, it is estimated. The cuts will be in both head office and the bank's branches.
The downsizing of the bank's workforce will include cuts in contract and outsourced employees as well as an early retirement plan for employees, for which the bank will set aside provisions in the fourth quarter, the report for which will be published tomorrow. This amount will likely be several hundred million shekels. Bank Hapoalim declined to comment on the report.
Bank Hapoalim's efficiency levels are already considered better than other banks. Nevertheless, more than 60% of revenue is swallowed up by expenditure.
Bank Hapoalim's current CEO Zion Kenan has already implemented several major streamlining plans, which led to cuts of more than 1,000 jobs. The deep cuts that have been carried out have been possible due to good relations between the bank's management and its workers committee. This contrasts with other banks where the management-workers relationships are more complicated.
Bank Hapoalim is expected to report close to NIS 3 billion profit for 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on March 9, 2015
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