Intesa Sanpaolo, Italy’s biggest bank, has made a deal with trade unions to cut 9,000 jobs. This is equal to about 10% of its workforce and is necessary because artificial intelligence (AI) and digitalization are growing.
The bank also said in a statement late Wednesday that it wants to hire 3,500 young people by the middle of 2028 to work in wealth management.
Intesa Sanpaolo said that the plan “aims at enabling generational change at no social cost” and to “further strengthen the future sustainability of the Group’s results… with a resilient business model in the digitalization and artificial intelligence scenario.”
From 2028 on, the changes should save 500 million euros ($540 million) a year on staff costs.
About 7,000 jobs will be cut in Italy, and the rest will be cut in foreign units.
The bank said it would take a 350-million-euro hit to its fourth-quarter earnings to pay for the exits. However, it said that the provisions would not change its prediction that it would make a net profit of more than 8.5 billion euros in 2024.
Shares of Intesa Sanpaolo were flat in Milan at noon.
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