Bank targets 8,000 job cuts by 2017

Pair Of Scissors

Banca Monte dei Paschi di Siena has pledged to cut an additional 3,360 jobs and increase capital to win support from the European Union for $5.6bn in state aid.

Bloomberg reports that Monte Paschi will target a total of 8,000 staff reductions by 2017, up from an estimate of 4,640 by 2015, according to a plan approved by its board Monday.

The lender already trimmed its employment force by 2,700, according to end-June figures, the Siena-based bank said in a statement on its website.

'This is a solid restructuring plan, built upon a strong turnaround track record, clearly identified actions and prudent macroeconomic assumptions', CEO Fabrizio Viola said during a conference call with analysts.

The bank, which is targeting net income of about $1.2bn in 2017, will cap management pay at $679,000 annually and reduce administrative costs by $597.4m by 2017. The company said it will carry out the $3.4bn capital increase by the end of next year.

Monte Paschi expects EU approval of its restructuring plan by 14th November, it said.

To access the complete Bloomberg article hit the link below

Monte Paschi to Shed More Staff in Return for EU Bailout

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