24 June 2017
visit http://events.sap.com/gb/fsi-forum-2017/en/home

UniCredit to cut 14000 jobs and invest in digitisation

13 December 2016  |  5817 views  |  0 strategy

Italian giant UniCredit has become the latest bank to outline plans to cut thousands of jobs and invest billions of euros in digitisation in a bid to boost profits.

Under a sweeping three-year plan, the bank will eliminate 6500 jobs on top of previously announced cuts, bringing the total number of losses to 14000 by 2019, resulting in savings of EUR1.1 billion.

Meanwhile, hundreds of branches are being closed and EUR1.6 billion is being pumped into IT investments, including "digitalisation activities" and core system updates designed to smooth the transition to online and mobile-centric services.

These moves are designed to generate EUR1.7 billion net annual recurring cost savings from 2019, helping the lender make a EUR4.7 billion net profit despite weak revenue growth.

A EUR13 billion rights offer will help remove billions in bad debt from the bank's balance sheet.

Says recently installed CEO Jean Pierre Mustier: "We have developed a pragmatic plan based on conservative assumptions, with tangible and achievable targets, dependent on cost and risk management, levers which are firmly under our own control."

Shares in UniCredit initially fell on the plan before rising more than eight per cent.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Alipay advances on Europe with bank and processor deals

Alipay advances on Europe with bank and processor deals

06 December 2016  |  8041 views  |  0 comments | 20 tweets | 19 linkedin
ABN Amro to finance digital spend by slashing jobs

ABN Amro to finance digital spend by slashing jobs

16 November 2016  |  4379 views  |  0 comments | 5 tweets | 7 linkedin
Lloyds closes another 49 branches

Lloyds closes another 49 branches

10 November 2016  |  4548 views  |  1 comments | 5 tweets | 7 linkedin
ING to spend EUR800 million on digital integration; shed 7000 jobs

ING to spend EUR800 million on digital integration; shed 7000 jobs

03 October 2016  |  13449 views  |  0 comments | 28 tweets | 27 linkedin
Deutsche Bank to close 188 German branches and cut 3000 staff

Deutsche Bank to close 188 German branches and cut 3000 staff

23 June 2016  |  14663 views  |  4 comments | 18 tweets | 13 linkedin
RBS takes the axe to back office and IT staff

RBS takes the axe to back office and IT staff

21 June 2016  |  6084 views  |  0 comments | 9 tweets | 7 linkedin
RBS to cut 600 staff as branch network withers

RBS to cut 600 staff as branch network withers

14 April 2016  |  4915 views  |  0 comments | 3 tweets | 4 linkedin
UniCredit sets up $200 million fintech fund

UniCredit sets up $200 million fintech fund

23 March 2016  |  12947 views  |  0 comments | 24 tweets | 12 linkedin
Tech revolution to wipe out 7.1 million jobs over next five years - WEF

Tech revolution to wipe out 7.1 million jobs over next five years - WEF

18 January 2016  |  6845 views  |  2 comments | 17 tweets | 15 linkedin
UniCredit embarks on Italian branch overhaul

UniCredit embarks on Italian branch overhaul

21 February 2014  |  6053 views  |  0 comments | 6 tweets | 2 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.events.sap.comvisit www.finastra.comdownload the report now

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
9433 views comments | 4 tweets | 5 linkedin
Worldpay pilots app-only mPOS for small retailersWorldpay pilots app-only mPOS for small re...
9094 views comments | 18 tweets | 27 linkedin
Live: EBAday 2017, day oneLive: EBAday 2017, day one
8591 views comments | 3 tweets | 4 linkedin
UK banks will need to change one million sort codes under ring-fencing rulesUK banks will need to change one million s...
8109 views comments | 8 tweets | 25 linkedin
What Banks and their customers can expect for the futureWhat Banks and their customers can expect...
7011 views comments | 7 tweets | 10 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job