BancajaThe famous board of seven; yesterday approved a new protocol for their respective unions during a recent turn of events. Bancaja and Caja Madrid will assure the provision of early retirement to about 3,400 employees with its alliance.

The union is being led by Bancaja and Caja Madrid and it is considering a 13% reduction in the total workforce of the potentially large work group — these steps are necessary to keep the financial policies from collapsing.

In addition to cutting down on workforce, Bancaja and Caja Madrid are also getting rid of company branches and an announcement was made that over 500 outlets will be shutdown over the next few weeks.

The new company has recently emerged from the Alliance on Institutional Protection System between the two big societies with the Insular de Canarias, the Laietana and Avila, Segovia and Rioja. Mr. Javier Ariztegui – The Deputy Governor of the Bank of Spain said that the recent mergers that occurred at Bancaja and Caja Madrid have resulted in the approval of plans to cut the number of employees and different branches that have been “exceeding” our financial layouts.

Spain is going through one of the toughest financial times it has ever seen and organizations are looking for means to retain profits and stay on the break even line chart. Even if it takes for those companies to get rid of employees or cut down on branches, all steps are being taken to ensure a long term existence factor for any organization.