The job cuts will reportedly occur in central offices, and will be implement by retiring people by using an industry fund and individual buyout packages
UniCredit Bank Romania in Bucharest, Romania. (Credit: Babu/Wikipedia.)
Italian international banking firm UniCredit is reportedly planning to lay off 950 full-time positions by the end of 2024, under its latest plan.
The job cuts would mostly take place in the bank’s central offices and will be implemented by retiring people by using an industry fund, Reuters reported, citing the unions.
The fund enables employees to cease working up to seven years before pension age.
According to the unions, the fund could be utilised by employees who qualify for retirement at the latest by April 2028.
Unicredit may also use individual buyout packages to reduce the headcount.
The bank has recently announced its three-year plan for 2022-2024, which aims at returning to investors €16bn, or almost all the profits generated over the period.
Under the strategic plan, the bank targets generating net revenue of more than €17bn, and gain more than €4.5bn in net profits for fiscal 2024.
Also, the company expects its net profit guidance to be more than €3.3bn, and distribution of €3.7bn for fiscal 2022.
However, UniCredit did not reveal details about its layoff plans during the announcement of the three-year plan, as it was to enter into negotiations with the employee unions, reported the publication.
The bank has sent a letter to the Fabi, First Cisl, Cgil Fisac, Uilca and Unisin unions to commence formal discussions.
UniCredit CEO Andrea Orcel said: “Our unique pan-European network of 13 leading banks and diverse talent will be united under a common purpose; to Empower our Communities to Progress.
“We are investing in digital, data and our businesses, putting clients back at the centre, setting out a new way of working for our employees and pursuing a capital-light model with sustainability embedded throughout.”
According to Reuters, Unicredit has 44% of the its world’s total workforce of 87,000 in Italy.
Under the bank’s previous plan, which included 8,000 job cuts, and closure of 500 branches, announced in December 2019, Italian unions had agreed for 5,200 voluntary layoffs.