Italy-based bank UniCredit is planning to cut 8,500 jobs, after posting a loss of 15bn in the fourth quarter of 2013, driven by revised macroeconomic assumptions, tougher regulatory framework, huge writedowns on bad loans and past acquisitions.
The planned job cuts will result in UniCredit losing about 6% of its workforce during 2013-18, a five-year project to improve profit.
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UniCredit said it had 699m in restructuring costs in the quarter as part of a wider plan to reduce the workforce, and the job reductions will lead to 300m in savings in 2016 and 700m starting from 2018.
In Italy, UniCredit will cut around 5,700 jobs, reported Bloomberg.
As part of its plans to improve profits, UniCredit will also reduce the assets in its non-core portfolio of faulty Italian loans by about 63% to 33bn by 2018.
The 15bn loss incurred by UniCredit in Q4 2013 is the biggest ever in Europe, and follows the 21.2bn loss reported by Spain’s BFA-Bankia in 2012, and Royal Bank of Scotland’s £24.1bn loss and UBS’s $23.8bn loss in 2008.
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