Saturday, September 25

Banco Sabadell proposes to the unions the dismissal of 1,900 employees in Spain, 13% of the workforce

Banco Sabadell has proposed this Thursday to the unions the dismissal of some 1,900 employees in Spain, about 13% of the workforce, as sources of the negotiation have informed Efe.

Sabadell justifies these new adjustments because it considers that the effort made throughout 2021 with the voluntary exit plan is not “enough” for the bank to be competitive and guarantee its sustainability. The adjustment plan will be applied, above all, in the network of branches and servicing by concentrating 85% of the total proposed departures, although the final impact will depend on the commitment and effort of the negotiating table.

Banco Sabadell communicated this past Monday to the unions its intention to initiate an ERE that would include a pre-retirement mechanism, incentivized leave and a social relocation plan, which will be carried out by Manpower.

As Europa Press has learned, Banco Sabadell bases this procedure on the search for greater profitability, contemplated in its strategic plan for 2021-2023. In this plan, the entity indicated that it would continue its efforts to contain and reduce costs derived from the transformation of the business model, automation and simplification of processes, and set out the objective of reducing 100 million euros in costs. Thus, the entity would have alleged the drops in margin and ROE (the latter is around 3%), which affect the entire sector, and a profitability below the cost of capital (cost that would be higher than 9%) as reasons to justify this template cut.

This ERE comes after the end of 2020, when the entity chaired by Josep Oliu agreed with the unions to leave around 1,800 bank employees. In this regard, the bank has transferred that this plan of voluntary departures would not have been enough to gain competitiveness and guarantee sustainability.

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