OP Financial Group to cut 460 positions

The company is changing the way it works internally for staff, in an effort to save millions of euros by the end of next year.

File picture / Credit: OP Bank

Finland’s biggest financial group is cutting 460 positions, after two months of negotiations.

OP Financial Group announced Tuesday that after talks which involved 1900 staff, the company had decided to make the job cuts in an attempt to save €18 million by the end of 2020.

However, the introduction of new working models to the financial group will result in the creation of 190 new jobs which are to be offered to current staff members facing redundancy.

That means a net loss of 270 jobs.

What is OP doing? 

OP Financial Group has been trying to simplify its corporate structure, and gradually switch to self-directed work – this means a flatter management structure with less hierarchy.

The changes began with retail banking, and in the fall of 2019, corporate banking and insurance departments also upgraded their organisational structures to reflect the new approach.

“In the final phase of our organisational change, we looked at the structure of the central community and how to increase our self-directed approach to support functions. The feedback from the personnel has been very positive” says Hannakaisa Länsisalmi, OP Group’s Vice President of Human Resources in a press release.

OP Financial Group is Finland’s largest financial group, with 148 cooperative banks and their central organisation.

The group has in total 12,000 employees, and paid €221 million in corporate income tax in 2018.