Raiffeisen Bank announced this week that it plans to close every third branch office and substantially downsize its workforce in Hungary.
Raiffeisen presently has 560,000 clients in Hungary.
The Austrian-owned bank plans to reduce general administrative expenses by twenty percent and decrease the number of full-time employees 15 percent by the end of 2016.
Raiffeisen closed 13 branch offices during the second quarter of 2015. Additional branch office closures are planned for the third quarter.
As of the end of the first half of 2015 the bank employed 2123 people in Hungary.
Raiffesisen announced that changes to interest rates mandated by parliament were largely responsible for the bank losing EUR 251 million in 2014. During the first half of 2015 the bank reported operating profits of just EUR 5 million.