Mizrahi Tefahot Bank (TASE:MZTF) has become the latest Israeli bank to announce a streamlining program as online banking bites into the staffing levels required by financial institutions. Mizrahi Tefahot announced last night that the board of directors had approved the streamlining plan recommended by the bank's management and which had been approved in principle by the Supervisor of Banks.
The approved plan will allow the early retirement of about 300 employees between 2017 and 2021. The bank's announcement stressed that in any event the number of those retiring won't rise above 300.
Those taking early retirement will be entitled to a pension until they reach the age of retirement, or severance pay enlarged by 150%. There will also be other benefits, which are described as not material for the bank.
The overall cost of the streamlining package to the bank will be an estimated NIS 300 million and will be included in the 2016 financial report.
Regarding implementation of the plan, the bank's management is conducting talks with the workers' committee as part of the overall 2016-2017 salary agreement.
Mizrahi Tefahot Bank says that the streamlining plan will save it NIS 70 million annually, before tax.
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2016
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