Discount efficiency: by the end of 2021, the number of employees will decrease by about 7%

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In the shadow of the Corona crisis and a few months after the entry of the new CEO Group Discount Bank In management Uri Levin Plans to reduce its workforce in the years 2020-2021 by about 620 employees who will retire as part of a program retirement Voluntary early. This is about 7% of the number of employees in the group at the end of 2019. Weighted by a natural retirement from the bank, the bank is expected to reduce its staff at a sharper rate, of about 9%.

Today announced a bank Discount Because it is expanding the voluntary retirement plan that was announced earlier this year by about 200 more employees who will leave the bank, “in light of the success of the retirement plan and the interest of many more employees in retirement in accordance with the terms of the plan.”

In this way, the Bank increases the voluntary retirement plan of its employees from 300 to 500 in total. This move comes just days after the subsidiary Cal announced a plan to reduce its workforce by about 60 employees, and a few weeks after the other main subsidiary Mercantile announced a voluntary retirement plan for 60 of its employees.

In addition, another 150 employees in “natural retirement” are planned to retire from the bank by the end of next year, which will happen when they reach retirement age. Against this background, the bank says that in 2020-2021, a total of 770 employees will retire from the bank, which is about 9% of the bank’s employees at the end of last year.

Again: Retirement plan at the beginning of the term

At the publication of the reports for the second quarter of this year, Discount Bank detailed the efficiency plan under which “Discount Bank” (and not the group, including the subsidiaries as aforesaid) will separate from 300 employees by the end of 2020. This plan was intended for employees aged 50 to 66 Compensation at a rate of 200% along with special grants for employees aged 56 to 60. At that time, the bank announced that the total cost of the retirement plan was NIS 553 million before tax.

Now, as mentioned, the bank is expanding the program by another 200 employees, so that in total it will reduce the number of its employees by 500. This is compared to 5,447 employees at the Group’s central bank in Israel. The bank notes that the expansion of the plan will increase expenses for the early retirement plan by NIS 367 million, so that it will amount to NIS 90 million, which is NIS 1.84 million per Discount Bank employee, on average. The additional cost due to the expansion of the program is expected to have a “material” effect on the results of the Discount Group’s fourth quarter.

At the end of 2019, the Discount Bank Group in Israel, which includes, in addition to the bank itself, also subsidiaries, including ICC and Mercantile, had about 8,914 employees who filled 7,945 jobs. It should be noted that at the end of 2015, the group had approximately 9,212 employees in 8,567 jobs, after a decrease of approximately 1,000 employees in the Bank’s staff in the years 2014-2015. In other words, Levin was now appointed to his position in December 2019, following a major reduction in the workforce, similar to a massive reduction led by his predecessor Lilach Asher Topilsky, who was appointed CEO of the Discount Group in early 2014.

Along with the early retirement plans, the Bank is leading a strategic move to leave Tel Aviv and unite the group’s headquarters in Rishon Lezion.





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