Page 126 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

emphasising, since this characteristic distinguishes the support measures offered
from those of many other transfer service providers.

6.7. Swedbank AS, Latvia (CASE STUDY 7)

6.7.1. Background and context
Swedbank AS (AS Hansabanka until 2008) is the largest bank in Latvia with
almost five billion LVL in assets, comprising 23% of the whole banking industry in
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Latvia ( ). It serves more than one million customers (individuals and
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businesses) ( ). Swedbank AS is owned almost exclusively by Swedbank group,
with home markets in Estonia, Latvia, Lithuania and Sweden.
In line with Latvia’s economy, Swedbank grew rapidly until the middle of 2008.
The net profits grew to LVL 63.9 million in 2006 and to LVL 100.3 million in 2007.
Despite the slow-down in the second half of 2008, Swedbank reported a LVL
59.1 million net profit in 2008. In the first nine months of 2009, Swedbank
reported a net loss of LVL 282.5 million, attributable mostly to the increase in
provision for bad debts of LVL 421 million (compared to LVL 25 million in 2008).
The number of employees in Swedbank almost doubled from an average of 1
494 in 2004 to 2 830 in 2008. However, since the slow-down in economy and
business, the bank has reduced its workforce by about 550 people since the end
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of 2008. It has also closed 13% of its branches since the beginning of 2009 ( ).
Although recruiting in the bank concentrates mostly on people with a background
in economics, mathematics, and sciences, during the economic growth period
when labour was sparse, the bank also hired people from other backgrounds,
such as teaching, offering them initial training to be able to operate in the bank.
Although, in most cases, Swedbank’s own resources are sufficient for its HRM
tasks, it uses some external help. The training centre involves external experts
when their own specialists lack competences required by the business.
Employees leaving the company are offered counselling in an external crisis
centre, supplemented by outplacement services for longer-established
managers, which are also externally supplied. Almost all redundancies in
Swedbank are by mutual agreement, with employees keeping several benefits,

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( ) Latvijas Komercbanku asociācija. Banku darbības rādītāji 2009.gada 3.ceturksnī. 30 Sept.
2009. Web. 27 November 2009.
http://www.bankasoc.lv/lka/statistika/bankas/article.php?id=3083 [cited 17.5.2010].
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( ) Swedbank. Swedbank AS 2009.gada 3.ceturkšņa rezultāti. 20 October 2009. Web. 27
November 2009. http://www.swedbank.lv/news/201009.php. [cited 6.5.2010].
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( ) Swedbank. Finanšu rezultāti. Web. 27 November 2009.
http://www.swedbank.lv/docs/finanses_gads.php. [cited 6.5.2010].

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