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Íslandsbanki Lays Off 20 Employees

Íslandsbanki laid off 20 employees today, most of whom worked at the bank’s headquarters in Smáralind, Vísir reports. The bank dismissed 20 employees in September and 16 in May.

In an interview with RÚV, Birna Einarsdóttir, CEO of Íslandsbanki, expressed lament. “The days are always sad and tough when we must resort to such measures.” Íslandsbanki’s staff has shrunk by approximately 90 employees, or 10-12% in total, in 2019.

“We cannot guarantee that this will be the last round of lay-offs, but we hope so.” According to Birna, the banking environment is evolving rapidly and Íslandsbanki must evolve as well. “Some of these changes today are organisational in their nature. Job descriptions are changing.”

An earnings report for the third quarter indicated that return on equity was below the bank’s target. “It’s our goal to improve return on equity to the satisfaction of the bank’s owners. To that end, various measures must be taken.”

Terms of notice differ between employees. According to Birna, the term of notice is approximately six months. In most cases, however, the employees will cease work at the end of November.

Íslandsbanki is fully owned by the Icelandic State Treasury. It is not the only bank to have laid off employees this year. In September, Arionbanki laid off approximately 100 employees.

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