Two Icelandic Banks Laid Off 120 Employees Today Skip to content

Two Icelandic Banks Laid Off 120 Employees Today

The layoffs of 100 staff members take effect today at Arionbanki bank, while at Íslandsbanki 20 employees were laid off. Both banks state the dismissals are a result of restructuring, and stretch across various branches and departments.

The board of Arionbanki approved a restructuring this morning which takes effect immediately. The changes include laying off 12% of the bank’s staff, 80% of whom work at its headquarters. The other 20% are employed at the bank’s branches across the country. Harladur Guðni Eiðsson, the Arionbanki’s public relations officer, told Vísir there are no plans to close any of the bank’s 21 branches. “The bank is not discontinuing any operations,” Haraldur stated, rather “projects are being moved and simplified.”

A press release about the layoffs at Arionbanki was published before staff themselves were informed. “The bank is registered in the Iceland Stock Exchange and we have to announce such extensive changes there first,” Haraldur explained. Individual interviews with the staff affected have now begun and will continue throughout the day.

Cost cutting is behind the layoffs at Íslandsbanki, according to the bank’s PRO Edda Hermansdóttir. As is the case at Arionbanki, Edda confirms most of the employees who have been dismissed work at the bank’s headquarters. A total of 25 employees will leave the bank this month, though five of those are retiring.

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