Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Banking

Caixabank to cut 6,450 jobs in Spain’s biggest banking staff overhaul

2021 07 01T163933Z 1 LYNXNPEH602OU RTROPTP 4 CAIXABANK RESULTS - Global Banking | Finance

By Jesús Aguado

MADRID (Reuters) -Caixabank has agreed with unions to lay off 6,452 employees in what will be the biggest ever staff overhaul in Spanish banking, even after the lender shaved 1,800 cuts from its initial plans, the bank and a union spokesperson said on Thursday.

The agreement to reduce its workforce in Spain by around 14.5% was reached after the bank met some of the union’s demands, such as voluntary redundancies rather than compulsory cuts, Comisiones Obreras (CCOO) union and the bank said.

The deal was also made possible after improving financial compensation for those who leave the bank, a spokesperson for the union added.

In April, Caixabank had announced plans to cut 8,291 jobs, one of the largest such culls in Spain’s corporate history, and close 1,534 branches, slightly more than a quarter of its offices, to adapt to a customer shift towards online banking.

Caixabank in March closed the acquisition of Bankia to become the country’s biggest domestic lender in terms of total assets. It estimated that layoffs would cost 1.9 billion euros ($2.25 billion).

It also said the extraordinary gross charge would have a negative impact of 90 basis points in its reported core tier-1 capital as of end of March and that costs and capital impact would be fully booked in the second quarter of 2021.

The bank also said it would reduce the number of branches affected to around 1,500.

The bank has around 5,550 branches and 44,400 staff in Spain.

The agreement with the union is a key aspect of the Bankia deal, which is underpinned by annual cost savings of 770 million euros ($916 million) by 2023. Caixabank said the agreement would save at least this amount..

It said it would provide further details at the upcoming second quarter results presentation.

($1 = 0.8440 euros)

(Reporting by Jesús Aguado; Editing by Kirsten Donovan and David Gregorio)

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post