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UniCredit to use 300 million euro charges for voluntary staff exits-sources
Global Banking & Finance Review®
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MILAN (Reuters) – UniCredit will use restructuring charges it is set to book this year to fund voluntary exits after receiving some 1,900 requests from staff late last year of which it met less than half, two people close to the matter said.
MILAN (Reuters) – UniCredit will use restructuring charges it is set to book this year to fund voluntary exits after receiving some 1,900 requests from staff late last year of which it met less than half, two people close to the matter said.
In reporting stronger-than-expected quarterly results, UniCredit on Wednesday raised its profit goal for the year above 6.5 billion euros ($7.2 billion) and said the figure included 300 million euros in restructuring charges it would book mostly in the second quarter.
It did not provide further details.
The bank plans to use the money to cut further costs by axing jobs in central offices and hiring instead young people to strengthen its commercial franchise and boost its digital capabilities, the sources said.
UniCredit late last year invited staff to come forward who wanted to retire early and were within five years from qualifying for a pension, the two sources said.
It had envisaged cutting some 800 jobs, a figure which it then raised to 925, but it was unable to meet another 1,000 requests from employees ready to leave, one source said.
In Italy banks lay off staff through a voluntary scheme funded by individual lenders which allows employees to retire early and receive up to 80% of their salary until they qualify for a pension paid by the state. ($1 = 0.9054 euros)
(Reporting by Valentina Za)
Restructuring refers to the process of reorganizing a company's structure or operations to improve efficiency and profitability, often involving changes in management, workforce, or financial arrangements.
Voluntary staff exits occur when employees choose to leave their jobs, often as part of a company’s restructuring plan, typically incentivized by severance packages or early retirement options.
A profit goal is a financial target set by a company, indicating the desired amount of profit it aims to achieve within a specific period, often used to guide business strategies.
Cost reduction involves strategies and actions taken by a company to decrease its expenses, thereby improving profitability and efficiency, often through layoffs, process improvements, or renegotiating contracts.
Job creation refers to the process of providing new employment opportunities, often driven by business growth, economic development, or specific initiatives aimed at reducing unemployment.
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