SocGen's Czech unit to lay off about 3.5% of staff

Komerční banka a.s. will lay off about 3.5% of its employees in the first half as part of measures to bolster its operational efficiency and economic resilience amid the coronavirus pandemic.

The lender expects approximately 20% of the affected staff to find another placement in the bank. More than two-thirds of the cuts will be carried out at the Czech Republic-based bank's head office.

The workforce reduction is part of the bank's 2025 strategic plan, which is being partially accelerated due to the pandemic's impact on the country's economy.

The Société Générale SA unit said it has set aside a provision of 76 million koruny for the fourth quarter of 2020 to cover the extraordinary costs it will incur from the layoffs. The bank has also recognized extraordinary expenses of 38 million koruny related to the reduction of its branch network.

READ MORE: Sign up for our weekly coronavirus newsletter here, and read our latest coverage on the crisis here.

As of Jan. 4, US$1 was equivalent to 21.34 Czech koruny.