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Company News

UPDATE 1-Spain's Sabadell plans to cut up to 2,000 jobs in Spain in 2021, source says

(Adds details on job cuts and context)

MADRID, Oct 28 (Reuters) - Spain’s Banco Sabadell plans to cut up to 2,000 jobs, or around 12% of its workforce in Spain, in 2021, through voluntary redundancies and early retirement, a source familiar with the matter said on Wednesday.

Sabadell, the country’s fifth-largest bank, declined to comment on the news first reported by Spanish media outlet elconfidencial.com.

The source did not provide a potential number of branch closures for 2021, but said that the measure came on top of a plan to shut down 235 offices in Spain this year.

Earlier this month, the chief executive officer of Sabadell, Jaime Guardiola, said it was also speeding up its cost cutting plan at its British arm TSB to complete it in two years rather than three.

Banks across Europe are struggling to cope with record low interest rates, and the economic downturn sparked by the coronavirus pandemic is forcing a focus on further cost cuts, on standalone basis or through tie-ups.

On Tuesday, Spain’s banking giant Santander earmarked an extra 1 billion euros in cost savings in Europe by 2022, and said it was planning to reduce staff in Spain, Portugal, Britain and Poland. (Reporting by Jesús Aguado; additional reporting by Emma Pinedo; Editing by Andrei Khalip)

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