KBC: to cut 1,400 jobs in next three years
(CercleFinance.com) - Belgian banking and insurance group KBC said on Wednesday that it will cut its workforce by 1,400 in the three years, as part of a plan to optimize its governance and increase operational efficiency.
KBC said the cuts will be made at its headquarters, in support functions and its branch network in Belgium, with 300 functions to be outsourced to its internal shared service centers in Brno (Czech Republic) and Varna (Bulgaria).
The layoffs will be made from September 2019 through to the end of 2022 and will be entirely absorbed through voluntary departures (retirement, staff turnover), which have amounted to more than 500 full-time equivalents (FTE) per year in recent years, the financial group said.
Meanwhile, the contracts of 400 external contractors - mainly in IT-functions or interim staff - will be terminated, it added.
"As a result of this exercise, our organization will be more agile and flatter, with less management layers and larger span-of-control", said CEO Johan Thijs.
KBC had a total workforce of 30,000 employees at the end of 2018, including 10,500 in Belgium.
After these measures, the KBC share was up 1.3% on Wednesday morning on Euronext Brussels.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
KBC said the cuts will be made at its headquarters, in support functions and its branch network in Belgium, with 300 functions to be outsourced to its internal shared service centers in Brno (Czech Republic) and Varna (Bulgaria).
The layoffs will be made from September 2019 through to the end of 2022 and will be entirely absorbed through voluntary departures (retirement, staff turnover), which have amounted to more than 500 full-time equivalents (FTE) per year in recent years, the financial group said.
Meanwhile, the contracts of 400 external contractors - mainly in IT-functions or interim staff - will be terminated, it added.
"As a result of this exercise, our organization will be more agile and flatter, with less management layers and larger span-of-control", said CEO Johan Thijs.
KBC had a total workforce of 30,000 employees at the end of 2018, including 10,500 in Belgium.
After these measures, the KBC share was up 1.3% on Wednesday morning on Euronext Brussels.
Copyright (c) 2019 CercleFinance.com. All rights reserved.