Banca Monte dei Paschi di Siena SpA, the third largest bank in Italy, had pledged to reduce additional 3360 jobs and increase capital to win support from the European Union. The bailout fund from the EU was valued EUR4.1 billion.
Monte Paschi would target a total of 8000 staff reduction by 2017. This was higher than the estimated 4640 by 2015, according to a plan which was approved by the bank's board during a meeting yesterday. The lender had already reduced its workforce by 2700 according to the bank's end-June figures. This was posted on the website of the Siena based bank.
According to the bank's Chief Executive Officer Fabrizio Viola, "This is a solid restructuring plan, built upon a strong turnaround track record, clearly identified actions and prudent macroeconomic assumptions."
The 55 year old Viola and Chairman Alessandro Profumo were forced by regulators to conduct an overhaul in the company. This was to be done by the oldest bank in the world to be able to secure a loan package from the European Union, said a Bloomberg report.
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