July 12, 2017 / 12:10 PM / 4 months ago

Bank Leumi to offer early retirement to five percent of workforce

TEL AVIV, July 12 (Reuters) - Bank Leumi will offer early retirement to 500 to 600 employees, some five percent of its workforce, as part of an efficiency plan, Israel’s second largest bank said on Wednesday.

Leumi estimated the cost of the voluntary programme at 500 million to 600 million shekels ($141 million to $169 million), over five years including pension allotments and increased severance payments.

The bank said it had reduced its workforce by 2,200 employees between 2012 and 2016 as part of cost-cutting moves such as consolidating operations and technology improvements.

Last month, Leumi agreed in principle to sell its headquarters in the heart of Tel Aviv’s financial district to Israel Canada Ltd and said it expected to post a pretax profit on sale of 260 million shekels.

Leumi reported a Q1 net profit of 622 million shekels, up from 459 million a year earlier. ($1 = 3.5566 shekels) (Reporting by Jeffrey Heller; editing by Jason Neely)

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