KBC Group NV will let go of a chunk of its workforce under a three-year overhaul of its management structure geared toward cutting costs.
CEO Johan Thijs said in a statement that the group prioritizes staff redeployment but "if it is not possible, we will look for alternative solutions." The overhaul drive, which will run until 2022-end, will have the Brussels-based financial services group lower its Belgian staff by 1,400, of which 300 will be moved to its internal shared service centers in Brno in the Czech Republic and in the Bulgarian city of Varna. The reduction main involves staff in the company's headquarters, support functions and local branch network.
KBC noted that the full-time equivalent reductions would be absorbed through natural outflows, including retirements and turnovers, so no compulsory redundancy or exit plan is needed. The group added that it will continue to invest in staff training.
The group will also end the term of 400 external contractors in Belgium, mainly in IT functions or interims.
In its Czech business unit, where more than 400 staff had been let go in the year ended June 30, the group will aim to reduce staff by at least 250 annually during the strategy's time frame. Earlier in 2019, the group launched a transformation effort in the business unit, leading to the automation and digitization of processes.
"It is KBC's intention to make the necessary changes with full respect for its employees and through an open and constructive dialogue with all involved and with the social partners," the group added.
When KBC announced in May that it would review its management structure, it said plans included the conversion of 65 smaller branches in the Flanders region of Belgium into automated branches and the closure of 51 automated branches as an increasing number of customers bank digitally.
Thijs said then that the overhaul would not have a financial impact on the group, but it had already recognized a €10 million cost in the second quarter over the matter.
