Banco Santander SA is planning to cut about 100 roles at its Italian consumer finance unit as part of a wider strategy to do away with branches in the country.
(Bloomberg) — Banco Santander SA is planning to cut about 100 roles at its Italian consumer finance unit as part of a wider strategy to do away with branches in the country.
The cut would remove roughly 14% of the unit’s local workforce, according to a letter Santander sent to an Italian labor union and seen by Bloomberg. It comes after the business got hit by dropping demand on the back of rising interest rates and it’s in line with Santander’s wider push to shift clients to digital products, the memo said.
The Italian union previously said the bank will close all of its 21 branches in Italy.
“As customers increasingly opt to use digital channels over branches, Santander Consumer Bank Italy has decided to close a number of branches and strengthen its digitization,” a spokesperson said. The unit “will start talks with unions later this week and is committed to minimizing compulsory redundancies wherever possible.”
The spokesperson declined to comment on the number of associated job cuts.
–With assistance from Rodrigo Orihuela.
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