CEO: Raiffeisen closing 45 branches, cutting staff

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Saying Austrian-owned Raiffeisen Bank is changing its strategy in Hungary to focus on corporate clients and electronic channels, Austrian CEO Heinz Wiedner reportedly told a press conference in Budapest today that the company would lay off 15% of its workforce in Hungary and slash the number of branches in the country from 112 to 67.

The CEO added that expenditures would be cut by approximately 20%, according to index.hu.

Wiedner said that Raiffeisen is still committed to Hungary and that the bank would shift its focus on its premium and private banking clients.

According to Wiedner, headcount of the firm in Hungary would decrease 15% by the end of 2016, and the majority of this redundancy is expected to happen this year.

He did not give a schedule for the branch closings, but said he expects the bank to become profitable by next year.

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