Caixabank Planning Over 8,000 Job Cuts

CAIXABANK is planning over 8,000 job cuts in banking’s biggest ever reduction of staff.

Following its merger with Bankia, Caixabank is planning to cut 8,291 jobs in the biggest ever staff reduction in Spanish banking, and the third-largest in Spain’s corporate history.

On Tuesday, management informed union leaders about its plans to cut employee numbers by 18.7% to 36,109, down from 44,000. Not only this, over 1,500 branches representing 27% of the total will be closed.

On Tuesday, María Jesús Montero, Spain’s finance minister and government spokesperson said the number of job cuts would be higher. She also called the plans “bad news” at a time when the government is making “herculean efforts” to preserve jobs through ERTE schemes and avoid the level of unemployment figures that were seen during the 2008 crisis.

Management said in a statement that the workforce adjustment plan, known in Spain as an ERE, “is based on production and organisational grounds, given the overlaps and synergies derived from the merger and the current market circumstances.” Negative interest rates are driving down margins and that is expected to last until 2025, the need for physical branches has also been reduced by the digitalisation of financial services.

The unions are hoping to bring down the final layoff numbers, which had been expected to be between 6,000 and 8,000. They warned that they will take action, at the latest shareholders meeting, if the cuts are not negotiated.

Source: El Pais

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