Spanish financial services company Caixabank has earmarked up to €890m to cut its domestic workforce by 6%.
The lender is planning to lay off 2,023 employees as a part of its strategy to improve profitability.
CaixaBank jobcuts: Details
Caixabank will carry out 60% of the planned job cuts during the second half of this year. The remaining redundancies will take place in second half of 2020.
However, Caixabank expects to incur the lay-off cost in the current quarter.
The job-cuts, according to the bank, will generate around €190m in annual savings
Last year, the bank unveiled plans to reduce its brick-and-mortar presence in Spain by one-fifth and continue with digital transformation.
Most of the European banks including the banks in Spain are currently engaged in exploring different avenues to reduce growing costs. The plans include bolstering digital presence, trimming branch network and reducing workforce.
Another Spanish lender Santander is also negotiating with the bank unions on shuttering branches and potential layoffs, according to Reuters.
Earlier this year, as a part of the digitalisation strategy, CaixaBank launched ATMs with facial recognition capabilities.
All transactions at these ATMs are validated by customer’s facial prints. The service is said to streamline transactions, increase security as well as eliminate the need to memorise ATM pins.