The old Landsbanki Bank employed 1,500 people in Iceland, but according to an announcement from the new state-run bank, Nýi Landsbanki Íslands hf., it will only employ around 1,000 people, so 500 bank employees face losing their jobs.
Atli Atlason, managing director of the personnel division of the new Landsbanki, said its operations will be organized completely differently than at the old bank, mostly because the new bank will minimize its brokerage operations and international projects, mbl.is reports.
It is expected that most of the jobs lost will be in those fields. However, Atlason said that not everyone who is involved in brokerage and international projects will be laid off, because the new bank will continue with a few of these projects.
The projects the new Landsbanki will primarily focus on in the near future are operating its network of retail branches and traditional retail banking operations. These projects require roughly 1,000 employees.
Click here to read more about the nationalization of Landsbanki Bank.