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Business

Danske Bank cuts 250 jobs in Denmark

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November 20th, 2013


This article is more than 11 years old.

As the axe falls hard at home, even more layoffs could be in the offing worldwide

Danske Bank announced 250 layoffs in Denmark yesterday. The bank, Denmark’s largest, is making the cuts as part of efforts to meet a 1.1 billion kroner cost-saving target for next year.

"We have let 250 people go, mostly in non-customer service positions,” the bank said in a statement. The job cuts affect support functions in Denmark, including the human resources and legal departments.

Most of the fired employees will leave the bank immediately.

READ MORE: Danske Bank abandoning Irish customers

Spreading the pain worldwide
Danske Bank, which has around 20,000 employees, announced in 2011 it would shed 2,000 positions by the end of 2014.

The bank was hit by Denmark's housing bubble burst, which sent the economy into a tailspin and left the country with the world's highest household debt per capita. Danske Bank’s new head, Thomas Borgen, took the helm in September. Speaking at the time, he said the bank "continues to operate in a challenging environment" and needed to cut costs.

While bank spokesperson Kenni Leth said that the domestic cuts were “a large step” towards reaching the cost-cutting targets, he wouldn’t rule out more job reductions in the future.

Børsen reported that “reliable sources” said that 350 more employees would soon be cut from Danske Bank offices outside of Denmark. The firings have not been made as yet, but negotiations with unions have started.

Danske Bank declined to confirm that international layoffs were pending.


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

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At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”