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Intesa eyes €675M cost savings from job cuts after Venetian banks acquisition

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Intesa eyes €675M cost savings from job cuts after Venetian banks acquisition

Intesa Sanpaolo SpA is expecting around €675 million in personnel cost savings per year from 2021 via job cuts following its acquisition of Venetian lenders Banca Popolare di Vicenza SpA and Veneto Banca SpA.

The bank said it reached a deal with trade unions under which it will accept all of the approximately 7,500 offers it has received from employees looking to exit on a voluntary basis, with the last departures to be completed by June 30, 2020. Including about 1,500 people from the Intesa group who already fulfill pension requirements, total voluntary exits will amount to around 9,000 people, or 9% of Intesa's workforce, Bloomberg News noted in a Dec. 21 report.

Intesa will also hire around 1,500 staff under mixed and indefinite-term contracts for its branch networks in "disadvantaged areas" in Italy and for financial adviser roles.

Intesa said it will book a €45 million pretax charge in relation to the voluntary exits, to be reflected in its fourth-quarter statements.

CEO Carlo Messina is developing a new business plan to be announced in February 2018, Bloomberg wrote, noting that the new plan will include expansion in insurance and wealth management.