Spanish banking group Banco Sabadell is reportedly planning to slash up to 2,000 jobs in Spain next year, as part of its digitisation plans.
The lender is preparing for early retirement and voluntary exits for its employees, the Spanish media outlet El Confidencial reported.
Banco Sabadell chairman Josep Oliu has already contacted the unions to begin negotiations on trimming its workforce, which could affect between 1,500 and 2,000 employees.
This represents nearly 10-15% of its 17,000 employees in the country, the report added citing sources familiar with the matter.
The move comes close on the heels of the branch closures of about 250 outlets, in recent months. The potential number of branch closures for 2021 have not been divulged.
Earlier this month, Banco Sabadell CEO Jaime Guardiola said that it will conclude its cost-cutting plan at its British retail banking subsidiary TSB Bank within two years, rather than three.
Last month, TSB Bank announced that it will cut around 900 jobs as part of plans to close 164 of its high street bank branches.
These cost-cutting measures come as a result of the impact of the Covid-19 pandemic on the UK banking industry.
October 2020 job cuts
Several banks have been carrying out downsizing initiatives lately as they navigate difficult waters.
HSBC is reportedly planning to cut up to 300 jobs at its commercial banking business in the UK as part of a restructuring plan.
Australian banking major Westpac decided to shutter banking operations from major Asian markets, which may impact up to 200 jobs.
Denmark’s biggest lender Danske Bank unveiled plans to slash 1,600 jobs by 2023, as part of its ongoing effort to save costs.
Santander Bank laid-off nearly 200 employees in its consumer and business banking units in the US.
Wells Fargo slashed more than 700 jobs as part of its previously announced multi-billion-dollar cost-cutting measure.
British lender Virgin Money decided to axe up to 400 jobs as part of a cost-cutting drive after it halted its restructuring plans following the outbreak of the Covid-19 pandemic.