The Spanish lender told unions the measure will entail eliminating 3,700 jobs and closing 1,150 branches.
Wednesday 15, May 2019
(Bloomberg) --Banco Santander plans to cut its workforce by 11 per cent in Spain as the lender continues the process of shuttering duplicated branches following the purchase of Banco Popular Espanol two years ago.
Most of the job cuts will be in retail branches but some jobs in central offices will be affected as well.
In a statement, CCOO union said that such a high figure of job destruction is highly worrying the union, which represents bank workers, our first objective is therefore to reduce the figures proposed by the bank.
The steps are part of a global plan to cut annual costs by EUR 1.2 billion ($1.4 billion) as the bank seeks ways to compensate for a low-interest rate environment that is eroding profits in Europe.
Santander has come under pressure from investors to improve its capital buffer levels, which are some of the lowest among its regional peers.
According to the bank’s first quarter report, Santander’s Spanish unit had 32,366 employees in 4,366 branches at the end of March.
As part of the global cost-cutting drive, the lender also plans to close 140 branches in the UK and eliminate 1,400 jobs in Poland, reducing its workforce there by 11 per cent.