East West United Bank, one of the biggest Russian lenders in Luxembourg, will cut about half of its workforce amid “unprecedented challenges” following the Kremlin-led invasion of Ukraine.
(Bloomberg) — East West United Bank, one of the biggest Russian lenders in Luxembourg, will cut about half of its workforce amid “unprecedented challenges” following the Kremlin-led invasion of Ukraine.
The bank, which was established in the Grand-Duchy in 1974, reached an accord to help protect its remaining staff and keep operating, Luxembourg’s main trade unions said in a joint statement on Thursday.
Between 32 to 44 of the bank’s 80 employees will be let go.
“The bank is facing unprecedented challenges due to the geopolitical context,” the unions Aleba, OGBL and LCGB said in the statement.
The agreement was reached on Oct. 25 after “tense” negotiations amid an “uncertain context for the bank,” the unions said.
East West, owned by conglomerate Sistema PJSC, provides wealth management and transaction services to Russian-speaking clients in and around Luxembourg, a European Union member state and financial hub.
The bank said in an email that the unions’ statement was correct and that it won’t comment further.
(Updates with bank’s response in last paragraph)
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