Switzerland-based personal finance institution PostFinance has decided to segregate its core business and lay off employees to save costs.

The move is a part of the company’s strategy, dubbed Speed Up, to become more cost-effective and competitive.

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As a part of this initiative, PostFinance has divided its core business into four business areas, namely payment solutions, retail banking, digital first banking and platform business.

The company will reduce its headcount by nearly 130. The job cuts will primarily impact the retail banking business.

The company has also decided to implement employment contract changes for around 260 employees by the end of next year.

PostFinance will axe 88 jobs and make changes to 150 employment contracts in retail banking.

The Payment Solutions business will lose 10 jobs and 11 contracts will get adjusted.

This business will offer payment and debt collection solutions to retailers and invoice issuers in Switzerland.

The HR, communications, innovation divisions will retrench 12 jobs and change 20 contracts, while 19 jobs and 83 contracts in IT and operations will be affected.

PostFinance also unveiled plans to create 80 new jobs as it aims to invest in a new digital bank and develop its platform business.

PostFinance CEO Hansruedi Kong said: “Despite falling profits, we have successfully implemented various projects during the current strategy period and are well-positioned to speed up the digital transformation.

“PostFinance has one of the most modern core banking systems in the Swiss financial centre. This will enable it to bring innovations to market even more rapidly in future.

“PostFinance has also significantly expanded and modernized its range of products by launching, for example, the self-service hub in the PostFinance app, the new e-finance log-in and digital investment solutions.”