COPENHAGEN Oct 11 Danske Bank said
on Tuesday it had offered about 40 percent of its employees
voluntary redundancy as part of efforts to cut costs against the
backdrop of low interest rates.
The bank has offered 8,000 staff, mainly in the bank's
personal banking and business banking divisions in Denmark, to
leave voluntarily and they have until Oct. 31 to consider the
offer, spokesman Kenni Leth said.
Keeping down costs is part of Danske Bank's aim to deliver
return on equity of at least 12.5 percent in 2018, while growth
in "digitalisation" also means the bank will need fewer staff,
The bank has no specific target for how many positions it
will cut, he said. Danske Bank, Denmark's biggest bank, employs
Danske Bank and other Danish banks have proved relatively
resilient in the face of negative interest rates, low oil prices
and financial market volatility, which is in contrast to many
banks in Europe.
"The low interest rate environment and low growth is
challenging the whole sector, and we also need to adjust to
that," Leth said. He said the offer was mainly targeted at
employees who were nearing retirement age or otherwise
considering other opportunities.
The news was first reported by Danish online media
(Reporting by Jacob Gronholt-Pedersen. Editing by Jane