Spain’s BBVA will cut 2,935 jobs and close 480 branches
MADRID, June 8 (Reuters) – BBVA has reached an agreement with unions to lay off 2,935 employees in Spain, or around 12.6% of its banking workforce in its home market, the bank and union Comisiones Obreras said on Tuesday ( CCOO).
“The adjustment plan is necessary to ensure the competitiveness and sustainability of future employment in the entity given the current context of profound transformation of the financial sector,” BBVA said in a statement.
In April, BBVA said it initially planned to cut 3,798 jobs and close 530 branches, more than a fifth of its offices in Spain, to accommodate a shift in customers to online banking.
On Tuesday, a spokesperson for CCOO said the lender also agreed to reduce the number of affected branches to 480, which BBVA later confirmed in its statement.
CCOO said some of its demands, such as implementing any cuts through voluntary layoffs, have been met. Under the agreement, around 210 employees will also be able to request incentive leave.
Implementing the plan will cost around 960 million euros (1.17 billion euros), with the mass layoff costing 720 million euros and branch closures costing 240 million euros, BBVA said.
With this plan, BBVA hopes to save around € 250 million each year from 2022, he said.
Last week, BBVA said it was ready to reduce the number of job cuts to less than 3,000, according to CCOO, following a day of strike action by thousands of its employees, in what was the first such work stoppage involving a national bank in 30 years. .
At the end of March, the bank had 2,366 branches and around 23,300 in Spain
Spanish bank staff recently staged protests against plans by five lenders to cut around 18,000 jobs.
On Monday, Caixabank, which bought Bankia to create Spain’s largest domestic lender, and the unions decided to extend their negotiations over around 7,600 job cuts. ($ 1 = 0.8212 euros) (Reporting by Jesús Aguado; Editing by Emelia Sithole-Matarise and Catarina Demony)