Dexia cuts 700 to 800 jobs

29th January 2009, Comments 0 comments

The board of directors of Dexia will discuss a major restructuring plan Thursday evening.

The costs of the Belgian-French have to be scaled back by some 15% over the next three years. The plan will be put to the trade unions on Friday.

According to reliable sources Dexia is going to cut 700 to 800 jobs- half of them in Belgium. The news was published in the daily De Standard.

Addressing fears of the trade unions, De Standard writes, again based on reliable sources, that there will be no straight out dismissals.

This year some 300-350 Dexia employees in Belgium come up for retirement. The bank will scale back its employment by simply not replacing most of these people.

Also according to the sources of the reputable economic daily De Tijd, the job cuts in Belgium will be limited to not replacing the people who leave. De Tijd writes that up to 1000 jobs could disappear at Dexia world-wide.

Bonuses and extras slashed as well

This year Dexia managers will probably not see a bonus. The other personnel will have to make due with much smaller bonuses (30-60% less, depending on the function). Other perks will also be drastically reduced too.

The Fortis bank and insurance group has also decided to slash bonuses and extra job perks for the employees.

A restructuring plan for the Dexia group will be put to the trade unions on Friday.

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