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Monte dei Paschi to cut 5,500 jobs in EU-approved restructuring plan

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Monte dei Paschi to cut 5,500 jobs in EU-approved restructuring plan
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The world’s oldest bank, Monte dei Paschi di Siena, has received the European Union’s formal approval for a five-year restructuring plan and thousands of job cuts.

Italy’s fourth-largest lender will receive a 5.4 billion-euro state bailout, which will remove a considerable weight from the country’s financial system.

The state will take a 70 percent stake in the Tuscan bank, while the lender’s chairman said the state would exit in 2021, but added that nothing ruled out an earlier withdrawal.

The EU says the bank has agreed to a drastic overhaul, which includes a salary cap for senior managers. But, 600 branches will be closed and 5,500 jobs lost.

The move takes the total amount of Italian taxpayer funds deployed to rescue banks over the past week to more than 20 billion euros.