Photo: Alessandro Garofalo / Reuters
The largest Bank in Italy — UniCredit is considering massive cuts to staff and expenses. It is reported Bloomberg citing people familiar with the situation sources. It is expected that this will be part of the new strategic plan of the Bank, who will present at the end of the year.
The Agency clarifies that we are talking about the reduction of 10 thousand employees, but the final number is not yet established and after approval, may be lower. As at the end of the first quarter of the current year, the company had more of 86.2 thousand people. Thus, the reduction can tap almost 12 percent of employees. Sources of Bloomberg said that the layoffs will affect both the Italian offices, where the company has the most employees and branches in other countries. Also under the new plan, the Bank can reduce operational costs by 10 percent.
The Agency indicates that the Bank is working to restore financial and operational indicators: in particular getting rid of problem loans and non-core assets. In the future, the organization intends to review its investment in Italian debt. To improve the financial situation of UniCredit sold its stake in Banca Fineco SpA, reminiscent of the Finance Magnates, and received more than $ 1.3 billion.
In early July it became known that Deutsche Bank plans to cut 18 thousand employees till 2022. Then Bloomberg wrote that this is due to the transformation of the business model that will allow the Bank to become more profitable and increase shareholder returns.
UniCredit operates in 18 countries, in Russia, “UniCredit Bank”, owned by the organization, has been operating since 1989 and is the country’s largest Bank with foreign participation.
Video, photo All from Russia.