The bank said it would be "simplifying its operating model" by reducing its staff numbers from the current 3,000 employees by more than a quarter.
Around 130 employees in Estonia, 250 employees in Latvia and 420 employees in Lithuania are set to lose their jobs, the bank said.
"The company has entered its next phase of transformation and is changing its operating model... To accelerate this transformation, the new operating model foresees simplifying bank’s business processes and reorganizing duplicated functions and areas where new technological approaches and organisational solutions are being introduced. As a part of the process, Luminor is also decreasing team sizes and entering collective redundancy," the bank said.
Luminor said it had informed and involved in the process the relevant public authorities in Estonia, Latvia and Lithuania regarding its planned reductions, including trade unions in Estonia, the Financial Sector Trade Union of Latvia and the Labour Council in Lithuania.
“With the accelerated transformations and more simplified organization, Luminor expects to significantly reduce its operating expenses, thus ensuring higher capacity to invest in the future,” said Kerli Gabrilovica, Head of Luminor Latvia branch and Head of Retail banking in Luminor Group.
“This transformation also means entering into a collective redundancy process, which will be carried out gradually during 2019. It has not been an easy decision to make, but it is much needed and right for further development. Luminor will offer support to departing employees and ensure professional outplacement process including workshops and individual coaching sessions to support their next steps on the labor market.”
Daily operations and customer service will continue as usual, the bank added.
Luminor is the third-largest bank and financial services provider in the Baltics, with a 16% market share in deposits and 22% in lending.
