UniCredit - Bank Austria: CEE Operations Move from Vienna to Milan - Retail Business to be Sold or Restructured

Published: November 11, 2015; 18:30 · (FriedlNews)

Until the end of 2016, all CEE interests with currently 48,000 employees have to be transferred to Milan. Until now this division has been the most important earner for Bank Austria. The 13 banking subsidiaries of Bank Austria in Eastern and Southeastern Europe employ nearly 48,000 people - and thus the majority of the approximately 57,000 employees of Bank Austria. The retail banking business of in Austria with 1.6 million customers has to be sold or restructured, Unicredit announced in the afternoon.

UniCredi-Bank Austria: CEE Operations Move from Vienna to Milan - Retail Business Will Be Sold or Restructured / Picture: © Wikipedia / Max Ryazanov

Until the end of 2016, all CEE interests with currently 48,000 employees have to be transferred to Milan.

Until now this division has been the most important earner for Bank Austria.

The 13 banking subsidiaries of Bank Austria in Eastern and Southeastern Europe employ nearly 48,000 people - and thus the majority of the approximately 57,000 employees.

The retail banking business of in Austria with 1.6 million customers has to be sold or restructured, Unicredit announced in the afternoon.

The savings plan of Unicredit is more drastic than previously thought. Overall, 18,200 jobs are terminated.

With the radical austerity course Unicredit wants to reduce costs by 1.6 billion euros.

The Italian bank has had to renew their medium-term plans until 2018 and imposed a new austerity program.

The board says: "Rigorous and ambitious"

Unicredit CEO Federico Ghizzoni defended the job cuts on Wednesday. He spoke of profound restructuring. He described the restructuring plan as "rigorous, serious and ambitious at the same time".

"But it is all about a realistic plan," said Ghizzoni. Above all it is about a completely self-funded plan. "We trust that we will implement it." The measures are essential to ensure that the bank continues to generate capital and to pay dividends in a challenging economic environment, and with interest rates at record low.