Black Tuesday: Banks on Both Sides of the Atlantic Announce Major Job Cuts

December 5, 2019 | Community Banking, News
https://dailyalts.com/wp-content/uploads/2019/12/termination-110302_1920-global-bank-firings.jpg

UniCredit, Italy: 8,000 jobs; Bank of Montreal, Canada: 2,300 jobs

On Tuesday, December 3, Unicredit, Italy’s largest lender, said it planned to cut 8,000 bank jobs as part of a strategic, four-year restructuring plan. Moreover, the bank said it would end up closing 500 branches as a part of that plan, which would lead to a saving of € 1 billion in costs.

The same day, the Bank of Montréal announced the deepest job cuts in the Canadian banking industry in years. It said it would cut 5% of its workforce, or about 2,300 jobs, in a drive to improve the bank’s operating efficiency.

What’s happening to global banks, and why are they shedding jobs as if there’s no tomorrow?

Bloomberg’s analysis

According to an analysis by Bloomberg, after Tuesday, the global tally of layoffs at banks has topped 75,000.

It’s a sobering fact, but Europe accounts for 83% of that estimate.

Europe’s economy has been a victim of global trade disputes. Its banks have been reeling from negative interest rates and weak investment banking revenues. As a result, European banks have been on a seemingly never-ending path of cost-cutting, restructuring, and fire sales of assets/businesses.

Deutsche Bank (18,000 jobs cut) and UniCredit (8,000) account for the biggest cuts within Europe.  Santander, Commerzbank, and HSBC cut by 4000-5000 jobs each. Barclays, Alfa-Bank JSC, KBC, SocGen, and Caixabank bring up the rear with 2000-3000 cuts each.

However, the figure for HSBC may go up by 10,000 according to reports in October. According to analysts at Jefferies at the time, the cuts may have more to do with operating efficiencies.

“That the headcount reduction appears to major on Europe should come as no surprise as this is where the inefficiency versus peers is in our view,” Jefferies said in a note to clients.

[Related Story: Bank-branded Checking Accounts Soon from Google ]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/01/iran-78829_640.jpg
Digital Assets: Iran Cracks Down On Illegal Crypto Miners
January 19, 2021     Digital Assets, News

Iran, which is facing severe energy shortages during the cold months, has been forced to implement rolling power cuts across the nation. In these circumstances, in a sudden action, police…

https://dailyalts.com/wp-content/uploads/2021/01/reservoir-4730209_640.jpg
Venture Capital: Bill Gates-Backed, CleanTech VC Raises $1B

Breakthrough Energy Ventures (BEV) is a venture capital firm that invests in cleantech. The term describes companies (or technologies) that aim to improve environmental sustainability including the negative impact of…

https://dailyalts.com/wp-content/uploads/2021/01/bitcoin-3083578_640.jpg
Alternative Investments/Digital: The Coinshares Physical Bitcoin (BITC) ETP To Trade On SIX Swiss Exchange
January 19, 2021     Alternative Investments, Digital Assets, News

European digital asset manager Coinshares is launching a new ETP product, the physically backed CoinShares Physical Bitcoin (Ticker: BITC) on the SIX Swiss Exchange today. The ETP enables investors to…

https://dailyalts.com/wp-content/uploads/2021/01/Grab-banner-1.jpg
FinTech: On Rebound From Failed Gojek Merger, Grab Mulls $2B U.S. IPO
January 19, 2021     FinTech, News

Reuters said in an exclusive report on Monday that Southeast Asian ride-hailing, food delivery, and fintech giant Grab was considering a US IPO this year. The news agency quoted three…