“Discovery” made the cut in every fifth employee

The financial group “Discovery” can reduce in 2016 up to 20% of the staff, said the largest shareholder and Chairman of the Board of Directors FY “Opening” Vadim Belyaev in an interview with TV channel “Russia 24”.

“We will continue to decline,” said Belyaev, answering a reporter’s question about whether the group to cut staff in 2016. The reason for the cuts, according to him, the consolidation and elimination of duplicative positions. “When the Bank merges, then at least part of positions can be reduced. In principle, a rather large part,” he said.

The group may cut staff by about 20%, said Belyaev. “It all depends on how things develop. <…> A big number, but times are tough. Survive the fastest”, he added.

It is not about target — we have no plans to reduce a certain number of employees, said the press service of “holding Open” the request . “This is a rough estimate based on our previous experience. The group improves efficiency by eliminating duplicative positions, which was the result of the integration in the group a number of banks”, — said in response.

Now part of the banking business of “Opening” consists of the Bank “Otkrytie”, Bank “BKM OTKRITIE” and the Bank “trust”, which is in the process of financial recovery.

In June 2015, the Bank “FC Opening” annexed Bank Petrocommerce. According to quarterly reports banks, the number of employees after the merger decreased by 40.8%. At the end of 2014, Bank “FC Opening” worked 5.1 thousand people, “Petrocommerce” – 4,1 thousand people; in a year the total staff objetivas banks fell to 5.4 thousand people.

Other banks also cut staff: rehabilitated trust fired almost half the staff for the year or 3 thousand people, but the “BKM Discovery” — a total of 329 persons (10,3 thousand people at the end of Q1 2015 against 10 thousand people at the end of the 4th quarter of 2015).

Vadim Belyaev said in an interview that he can continue the consolidation of the group this year. “Times of crisis is the time to merge the banks and to save on costs. I think that once we’re ready, and this idea will be approved by the Central Bank, we will conduct the merger of the Bank group “Discovery”, he said.

“We are currently considering different options of integration strategies, none of which is not yet final”, — said the press service of the holding on the question of whether all banks are planning to merge. Previously, “Vedomosti”, with reference to its sources reported that a group of “Opening” considers possibility of merge of two banks — “BKM Opening” and “Trust”.

The development and integration of banking assets is one of the core competencies of the group “Open,” added the press service. “Our banking business formed by integrating more than 10 banks of various sizes. As a result of consolidation processes the number reduced to 3. But further increase in efficiency, especially in the current environment, may require deeper integration”, — says the press-service.