- The negotiation process was characterised by a willingness to engage in dialogue and a constructive and flexible approach, on both sides, in order to reach the best possible agreement
- This restructuring is one of the milestones envisaged under the framework of the Bank’s strategic plan
- The parties agreed to establish a principle of voluntary participation, as well as a redeployment scheme for 100% of leavers
- The restructuring process will enable the Bank to making savings of at least 100 million euros per year
Banco Sabadell has today reached an agreement with the trade unions to carry out a reorganisation of the Institution in Spain, which will involve some staff redundancies, through a Spanish redundancy scheme (Expediente de Regulación de Empleo, or ERE). This agreement had the support of 100% of the trade unions at the negotiating table.
The objectives of the strategic plan include modernisation of the bank, improvements to customer service, an increase in revenue and a necessary cost reduction plan. The cost-cutting objective forms part of the redundancy scheme that was signed today.
The agreement anticipates the departure of 1,605 persons, equivalent to 10% of the workforce, of which 950 will be in administrative roles in the branch network, 400 in sales roles and 255 in the corporate centres. It also includes the option of voluntary participation, for those choosing to take early retirement and for general redundancies. Voluntary redundancy is the priority criterion, as long as the agreed minimum adjustment target of 1,380 people is reached.
This agreement also includes a redeployment scheme orchestrated through Right Management, a specialist company of the ManpowerGroup. The aim of the scheme is to redeploy 100% of people who decide to take part.
Banco Sabadell estimates that the cost of the process will be 269 million euros before tax, with no impact on the fully-loaded Common Equity Tier 1 (CET1) ratio, as it will be funded with capital gains from the sale of bonds from the amortised cost portfolio. The provision for the restructuring costs and the provision for capital gains were both recorded in the third quarter of 2021.
The agreement reached will deliver cost savings of at least 100 million euros per year before tax, in line with Banco Sabadell’s strategic plan.
The restructuring process will enable the Bank to making savings of at least 100 million euros per year
The parties agreed to establish a principle of voluntary participation, as well as a redeployment scheme for 100% of leavers
This restructuring is one of the milestones envisaged under the framework of the Bank’s strategic plan
