According to Kiisel, the bank has streamlined management levels and reduced manual work over the past year, enabling a reduction in the number of employees needed. Kiisel explained that there isn't one single factor driving efficiency; rather, it is the result of a combination of several factors.

"These layoffs are happening across the entire organization, and the biggest gain today is the broad automation of various processes," Kiisel said.

As an example, she highlighted the reduction of manual work, where previously queries had to be made from certain registers, results transferred into spreadsheets and then moved to other systems for conclusions. Similarly, securities trading has now been widely automated.

Part of the efficiency improvements comes from the use of artificial intelligence at LHV Bank. "We've implemented and developed some models here. For example, simple tasks in customer service, such as AI-based online chats. We don't need to train it ourselves; it's essentially possible to train the model directly," Kiisel explained.

"We also have simpler tools within our internal communication channels, such as delegators that distribute information to the right places. We use AI quite extensively on a daily basis for data analysis, information aggregation and documentation writing," she said.

According to Kiisel, advancements in artificial intelligence give the bank confidence that new technologies will enable them to accomplish more work with fewer employees in the future, which supports the decision to reduce the workforce.

"In the end, we want every employee to come to work and engage in meaningful tasks every day, to feel valued and to create added value, rather than spending time on relatively routine activities. That's the idea," Kiisel stated.

At the same time, Kiisel said that the layoffs of 60 employees were also prompted by the bank's rapidly growing costs. While the bank's business volumes have grown by 25 percent over the last two years, costs have increased by 40 percent. "Inevitably, we cannot continue at this pace," she said.

The CEO added that the bank is also under pressure from increased capital requirements and falling Euribor rates. "Three months ago, the Euribor forecast was around 2 percent for the end of the year, but today it is at 1.7 percent. This is a fairly significant difference with an immediate impact," Kiisel noted.

Nevertheless, the first 11 months of the year have been relatively successful for LHV. The bank posted a profit of €124.8 million for the 11-month period, which is €6.6 million less than during the same period last year. While interest income has declined, costs have also decreased. Kiisel emphasized that they are operating with the future in mind.

"An organization is stronger the better it can foresee possible changes. We know what we are entering into. We know what challenges lie ahead," she said.

American management guru and theorist Jack Welch famously recommended that organizations let go of 10 percent of employees to improve operational performance. While Kiisel said it's not appropriate to draw a direct parallel with LHV Bank, there is some merit to the idea.

"Often, organizations have a naturally organic pace of change. Sometimes, when you put up a bit of a wall – where there's more discomfort – changes actually take root faster," she remarked.

For next year, LHV Bank plans to continue its development. Nothing will be scaled down or closed, and there are no plans for additional layoffs. However, they do not plan to hire new employees immediately either. If there arises a need for additional staff, any changes will come from restructuring existing roles, according to Kiisel.

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