Bank Hapoalim (TASE: POLI) board of directors, following a recommendation by management, has announced a streamlining plan based on voluntary retirement between 2025 and 2028. The plan is based on the goals of the bank's strategic plan, focusing on improving operational efficiency and enhancing operating models as part of Hapoalim's preparation for the changes taking place in the banking world.
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Hapoalim said, "Implementation of the streamlining plan is expected to result in a net cumulative reduction of about 770 positions in the bank's workforce over the years of the plan, taking into account staffing, reinforcement and turnover needs in areas with business focus areas."
According to the bank's estimates, there is a one-time increase in actuarial liabilities in the bank's financial statements for 2024 of about NIS 600 million before tax (about NIS 400 million after tax). The streamlining plan is expected to result in savings in expenses of about NIS 300 million per year before tax.
Permanent employees who retire early will be offered early retirement benefits and increased compensation depending on age and seniority. The retirement rate will be in a way that supports implementation of the bank's strategic plan and in accordance with the progress of the various components within it.
Bank Hapoalim had 8,200 employees at the end of 2023, according to its financial statement for that year.
Published by Globes, Israel business news – en.globes.co.il – on December 30, 2024
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