The ambitious Greek bank, that offered € 701 million in cash to buy two state run money lenders last summer, proceeds to a radical changes of its course. Piraeus Bank sends a percentage of its employees in Greece and abroad to a so called “sabbatical year.”
The bank sends employees on paid leave for 1 to 3 years in order to curb its wages budget. A circular sent to employees informs them that they can use long-term leave form 1 to 3 years and ensures them that after the leave the employees will return back to their positions.
The program targets initially the 5,049 Piraeus bank employees and 1,611 employees in Piraeus subsidiaries in Greece.
The program is scheduled to be extended also to the foreign subsidiaries of the bank, employing some 6,757 people.
According to the management of Piraeus bank, if 5% of the employees participate in the program, the Bank will achieve savings of € 20 million per year.