Montei dei Paschi to cut 2,600 jobs
Italian bank Monte dei Paschi is planning to cut 2,600 jobs and close 500 branches as part of rescue plans aimed at building a "de-risked and well-capitalised bank".
Monte dei Paschi will cut the number of branches to 1,500 by 2019, from the 2,000 it currently owns. Meanwhile, the job cuts are expected to reduce personnel expenses by around nine per cent by 2019.
A managerial shake-up will also see the departure of finance chief Arturo Betunio, who steps down on 25 November.
The troubled bank's share price rocketed yesterday as investors waited to hear the recovery plan, and climbed over 23 per cent in this morning to hit €0.43.
As part of its strategy to get back on track, the bank will dispose of business units – the group has received a €520m (£463m) offer for its merchant banking business from Istituto Centrale delle Banche Popolari, and hopes to sell €28bn worth of bad loans.