21 August 2017
Find out more

Unicredit reaches deal with trade unions on mass redundancy programme

06 February 2017  |  2919 views  |  0 Busines men walking through city

Unicredit has reached an agreement with Italian trade unions to cut 3900 jobs as part of a sweeping three-year plan to transform its business.

The redundancy programme in Italy consists of a voluntary pre-retirement plan, as part of a move by the bank to hire younger, more digitially-minded staff. The bank says it is committed to hire an additional 1300 staff "to ensure a positive generational turnover" over the next three years.

The distressed bank has already said it 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.

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

UniCredit to cut 14000 jobs and invest in digitisation

UniCredit to cut 14000 jobs and invest in digitisation

13 December 2016  |  6056 views  |  0 comments | 12 tweets | 15 linkedin
Anthemis secures backing from EIF and UniCredit for inaugural venture fund

Anthemis secures backing from EIF and UniCredit for inaugural venture fund

02 August 2016  |  5889 views  |  0 comments | 5 tweets | 9 linkedin
UniCredit tempts startups with cash and collaboration package

UniCredit tempts startups with cash and collaboration package

14 June 2016  |  8938 views  |  0 comments | 12 tweets | 16 linkedin
UniCredit sets up $200 million fintech fund

UniCredit sets up $200 million fintech fund

23 March 2016  |  15087 views  |  0 comments | 24 tweets | 12 linkedin
UniCredit runs European Appathon; opens virtual doors to startups at digital expo

UniCredit runs European Appathon; opens virtual doors to startups at digital expo

05 November 2015  |  5539 views  |  0 comments | 6 tweets | 3 linkedin
UniCredit embarks on Italian branch overhaul

UniCredit embarks on Italian branch overhaul

21 February 2014  |  6141 views  |  0 comments | 6 tweets | 2 linkedin
UniCredit and IBM create cloud-based joint venture

UniCredit and IBM create cloud-based joint venture

22 July 2013  |  9044 views  |  0 comments | 4 tweets | 2 linkedin
Unicredit experiments with self-service branches

Unicredit experiments with self-service branches

25 June 2013  |  5767 views  |  0 comments | 6 tweets | 2 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.worldpaymentsreport.comdownload the paper now

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
10608 views comments | 24 tweets | 23 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
8875 views 0 | 5 tweets | 1 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8852 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
8527 views comments | 10 tweets | 7 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
8260 views comments | 18 tweets | 16 linkedin