Management has already begun the negotiations to shut down three Banco Popular branches in the Algarve region with Vila Real de Santo António, Olhão and Almancil heading the wider closure of 47 outlets countrywide.
Employees of the three Algarve locations have been contacted by the bank's management with its proposals for leaving employment ‘by mutual agreement’ indicating these branches are the ones to be closed, although no official statement has yet been issued, according to José Manuel Martins, a Southern Banking Union representative.
Banco Popular announced in early November that it was to restructure and close 47 branches to reduce staff numbers by 295 by the end of 2016.
The bank is proposing a pay-off of two months' salary for each year of service to those who accept the termination of their contract. Another option is early retirement for those workers over 55-years-old.
Martins added that the union was told in November that the bank was reducing staff numbers with some services being relocated to Madrid and is insistent that those workers with cheap in-house mortgages with Banco Popular should retain these deals.
The banking sector in Portugal has seen a reduction in the number of jobs in recent years as management has attempted to cut costs and repair bombed out balance sheets.
BANIF, MillenniumBcp, Barclays, Novo Banco, Caix Geral and now Banco Popular all have shed staff as they go bust, get sold, withdraw from the market, prepare for recapitalisation or change name to make it look as if they are doing something positive
