BBVA has agreed terms with labour unions for the termination of almost 3,000 staff and closure of 480 branches in its home market of Spain.
The restructuring affects 10% of the bank's Spanish workforce and will entail the loss of 2,935 jobs.
The Spanish bank had been pushing for a larger target of 3,798 job cuts and 530 branch closures, but was forced to backtrack after facing a political backlash. Some 657 staff initially singled out for termination have instead been reassigned to other tasks within the bank.
The cuts will hit 350 people from the Corporate Center, 254 from BBVA Spain’s Central Services; 154 staff from intermediate structures of BBVA Spain and 2,177 branch employees.
The cost of the plan is estimated at €960 million before taxes, of which €720 million correspond to the collective layoff and €240 million to the closing of branches.
BBVA expects the overhaul to generate estimated savings of about €250 million annually before taxes starting in 2022, of which around €220 million will be related to staff expenses. In 2021 estimated savings will be about €65 million before taxes.
The bank maintains that the adjustment in staffing levels and branch numbers is needed "to ensure the competitiveness and the sustainability of employment in the future given the current context of profound transformation in the sector, marked by a tremendous competitive pressure, low interest rates, the accelerated adoption of digital channels by customers and the entrance of new digital players".