Italy’s Monte Paschi to cut €1.5m costs in three years

Italy’s Monte Paschi di Siena is planning to cut costs by €1.5m over the next three years, by changing the top management structure of its holding companies.

According to a memo released today by the Italian bank, Monte Paschi has decided to reduce the number and the salary of its directors in order to achieve a sustainable business model by the end of 2015.

The plan will be applied to Mps Gestioni Crediti, Consorzio Operativo, Biverbanca e Mps Tenimenti, the bank said.

Meanwhile, Monte Paschi is pushing ahead with another cost-saving plan which will see redundancies for 4600 employees of the bank, with most back-office functions to be outsourced to external providers.

Over the last weeks, the bank’s staff has been protesting against the plan with a series of strikes, the latest of which planned for August 13.

Ilaria Dalla Riva, head of human resources at the bank is heading the negotiations with the workers’ unions in order to find a feasible plan to save some of the roles at risk of redundancy.

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