20 April 2018
Visit https://aciworldwide.webex.com

UniCredit to cut 14000 jobs and invest in digitisation

13 December 2016  |  6468 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  |  9327 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  |  5316 views  |  0 comments | 5 tweets | 7 linkedin
Lloyds closes another 49 branches

Lloyds closes another 49 branches

10 November 2016  |  5270 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  |  14769 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  |  15525 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  |  6607 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  |  6062 views  |  0 comments | 3 tweets | 4 linkedin
UniCredit sets up $200 million fintech fund

UniCredit sets up $200 million fintech fund

23 March 2016  |  16394 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  |  7833 views  |  2 comments | 17 tweets | 15 linkedin
UniCredit embarks on Italian branch overhaul

UniCredit embarks on Italian branch overhaul

21 February 2014  |  6349 views  |  0 comments | 6 tweets | 2 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
https://www.capgemini.comvisit www.ebaday.comVisit http://go.jumio.com/finextraAd

Who is commenting?

Top topics

Most viewed Most shared
Revolut launches spare change savings toolRevolut launches spare change savings tool
9538 views comments | 14 tweets | 19 linkedin
TransferWise becomes first non-bank to open settlement account with BofE RTGSTransferWise becomes first non-bank to ope...
8591 views comments | 17 tweets | 31 linkedin
Barclays Bank sets up tech venture unitBarclays Bank sets up tech venture unit
8315 views comments | 16 tweets | 22 linkedin
Top tier banks pass first transactions on trade finance blockchainTop tier banks pass first transactions on...
7959 views comments | 18 tweets | 23 linkedin

Featured job

Competitive base, double OTE
London, UK or Paris, France or Frankfurt, Germany (other major cities in Europe considered)

Find your next job