Bank Hapoalim (level: Polly) The Board of Directors, based on the management’s recommendation, announced a simplified plan based on voluntary retirement between 2025 and 2028. The plan is based on the objectives of the bank’s strategic plan, with a focus on improving operational efficiency and enhancing operating models as part of Hapoalim’s preparedness for the changes occurring in the world of banking.
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“Implementation of the simplification plan is expected to result in a net cumulative reduction of approximately 770 positions in the bank’s workforce over the years of the plan, taking into account recruitment, consolidation and employee turnover needs in business-focused areas,” Hapoalim said.
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 simplification plan is expected to lead to savings in expenses of about 300 million shekels annually before tax.
Permanent employees who retire early will be given early retirement benefits and increased compensation depending on age and seniority. The retirement rate will be in a manner that supports the implementation of the bank’s strategic plan and is commensurate with the progress of its various components.
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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