Italian banking giant UniCredit is reportedly planning to axe around 3,000 jobs as part of its new strategic plan.
The bank is planning most job cuts at corporate centres to reduce bureaucracy and duplication, Bloomberg reported citing sources.
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Final numbers are still being discussed as the lender would engage in talks with unions after presenting its plan on 9 December 2021. Layoffs will be made in Italy as well as in foreign markets.
UniCredit CEO Andrea Orcel seeks to focus on profitable business to generate higher and sustainable returns.
Most recently, Orcel, who joined the bank in April this year, ended talks to acquire Banca Monte Dei Paschi di Siena (MPS).
Orcel is also planning to increase UniCredit’s current dividend policy and focus on more rewarding products and capital-light businesses, the sources said.
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By GlobalDataIn Italy, the bank plans layoffs through voluntary departures along with early retirement schemes, the sources told the publication adding that the lender is planning new hiring as well.
As part of the plan, it is shifting deposit-taking and lending operations to core countries in Europe from representative offices.
As of September, UniCredit has operations in 13 markets European markets and employs over 87,000 people.
As per the report, the lender is working to centralize the trading business in Italy. It is also reducing headcount in the UK and moving the staff to the home market.
Separately, the lender is also in talks with CNP to merge the life insurance joint venture.
