50.3 Headcount restructuring

On 9 March 2017, the PZU and PZU Życie Management Boards decided to continue the downsizing process in PZU and PZU Życie. On 22 March 2017, an agreement was concluded with the trade unions operating in PZU and PZU Życie regarding the scope and rules for conducting the downsizing process in PZU and PZU Życie. The plan assumed that group layoffs would be held during the period from 24 March to 18 December 2017 and would affect 1,944 employees and no more than 956 PZU and PZU Życie employees of various professional groups were to be laid off.

Ultimately, the restructuring affected 943 persons and 570 employees had their employment contracts terminated or entered into dissolution agreements (without prior proposal of new terms and conditions of employment) as part of the restructuring process.

In the period of 12 months ended 31 December 2017, the costs associated with the payment of benefits to the released employees amounted to PLN 39 million. As at 31 December 2017, the remaining restructuring provision amounted to PLN 24 million (for the payment of deferred severance pays).