The board of Íslandsbanki has approved the bank’s new structure, which comes into effect today. With the changes, the number of full-time employees will decrease by a total of 50 during the year, while the number of employees decreased by more than 20 people today.
This appears in notification from Íslandsbanki to the Exchange.
It says that the goal of the changes is to simplify the management structure and shorten communication channels, thus further enhancing the bank’s customer service. The organizational changes are intended to strengthen the bank in its ongoing offensive, as digital development, increased use of artificial intelligence and changing customer demands call for a new approach in operations and services.
The number of managers decreased by 15% as a whole during the year
“With the changes, the number of managers will be reduced by 15% for the year as a whole, and directors by 20%. The number of the bank’s main committees will also decrease from eleven to four. A new support department, Strategy and Culture, has been established, which will promote increased cooperation between other support departments and continue to strengthen and develop the bank’s corporate culture. The department includes legal services, human resources, marketing and communications, the operations department as well as strategic planning and sustainability. Changes have also been made to the names of the bank’s business units in Icelandic, and they are now called Individual Division, Corporate Division and Investment Banking Division.
The number of employees will decrease by over 20 with today’s changes, and the decrease will be felt mainly in the bank’s support units. In total, the number of full-time employees will decrease by a total of 50 during the year. It takes into account the reduction in the number of employees due to early retirement due to age, which was reported in the 2025 annual report. Íslandsbanki emphasizes that changes like this are carried out with responsibility and respect, and that the employees affected by them are taken care of,” the announcement says.
Part of increasing efficiency
Also, the costs for the terminations announced today will be paid in the second quarter and amount to almost 260 million ISK.
Costs due to the abolition of the early closing system were charged in 2025. It is expected that the annual salary costs at Íslandsbanki will decrease by approx. one billion ISK following the changes. Its effects will first be seen in the results of the third quarter of 2026 and will be fully realized in 2027.
“The changes are part of increasing efficiency, shortening communication channels and simplifying decision-making. In this way, we strengthen customer service and take advantage of the opportunities inherent in a completely changed technological environment. We have worked systematically to analyze the impact of the latest technological changes on the bank’s operations. We intend not only to follow that development, but to be a leader in it and use it to strengthen Íslandsbanki as one of the leading service companies in the country.”
In these organizational changes, we are saying goodbye to powerful staff who have contributed a lot to the bank, and we thank them very much for their important contribution.
With these changes, Íslandsbanki continues to develop its operations, strengthen its competitiveness and ensure that the organization and cost base support long-term results and excellent customer service,” says Jón Guðna Ómarsson, Íslandsbanki’s CEO.
