Banco Santander Is Reportedly Planning to Shut Down As much as 1,000 Branches, Could Reduce 4,000 Jobs

Banco Santander S.A. (Santander Group) (BME:SAN), the world’s 16th-largest banking establishment and monetary companies firm primarily based in Madrid, has been centered on cost-cutting measures in an effort to take care of the financial challenges created by the COVID-19 pandemic.

Banco Santander together with different Spanish lenders are struggling to deal with extraordinarily low rates of interest within the euro zone and in addition a gradual shift by customers to on-line or digital banking platforms.

On November 13, 2020, Santander financial institution’s administration determined they’d minimize round 4,000 jobs (about 14% of its whole workforce in Spain, its principal market), in accordance to Reuters which cited sources aware of the matter. Santander can be closing down as many as 1,000 bodily department areas or roughly 32% of its workplaces primarily based in Spain, the supply declare

Santander financial institution had 28,797 staff on its payroll as of September 2020. These workers are working on the establishment’s headquarters that are situated on the outskirts of Madrid and three,110 different branches throughout Spain. The sources additionally revealed that the financial institution would possibly transfer round 1,000 employees members to different jobs or roles inside its Spanish branches.

It’s value noting that the variety of Santander branches for the reason that 2008 monetary disaster have nearly halved. However Spain nonetheless stays one of many European nations with the very best variety of branches (globally) per 100,000 adults at nearly 50, in accordance with information compiled by the Worldwide Financial Fund (IMF).

European banking establishments have been centered on making important price cuts and have additionally tried to companion with different service suppliers on varied initiatives to additional deliver down operational bills.

Caixabank (BME: CABK) has not too long ago confirmed a €4.three billion (appr. $5.1 billion) acquisition of its competitor Bankia BKIA.MC. The deal might result in 1000’s of job cuts after it’s finalized.

Banks across the globe have been struggling to take care of operations resulting from actually low rates of interest following the Coronavirus outbreak. Many extra customers now want to make use of all-digital banking companies, particularly in a publish COVID world.

As reported not too long ago, the Financial institution of India has postponed its plans to launch new bodily branches as extra customers are utilizing digital banking platforms.