Italian banking group Intesa Sanpaolo estimates to save nearly €675m a year from 2021 by reducing employee strength following a deal to acquire the operations of two former Venetian Banks (Banca Popolare di Vicenza and Veneto Banca).

The bank has reached an agreement with the trade unions to accept all applications regarding voluntary exists under Solidarity Allowance that totals to nearly 7,500 people.

The separation process is expected to be completed by 30 June 2020.

Additionally, 1,500 people who fulfil pension requirements will exit the group by 31 December 2018. With this, the total number of exists from Intesa will be approximately 9,000 people.

The banking group also announced to hire 1,000 new personnel with indefinite-term contracts to consolidate the branch network.

It will also hire additional 500 people under mixed contract, each of them employed with part-time indefinite-term contract and on a self-employed basis as financial advisors.

All new hires are in addition to 150 hires already agreed on with the trade unions on 1 February this year as well as nearly 100 recruits with indefinite-term contracts reserved for people with fixed-term contracts working in the operations of the former Venetian Banks as at 25 June his year.

Following these adjustments, the banking firm expects to save €675m per year are expected on a fully operational basis starting 2021.