Spanish lenders, including Santander, are increasing cost-cutting measures to cope with the economic impact from the COVID-19 pandemic, ultra-low interest rates in the euro zone and high volume by customers towards online banking.
According to Reuters,two sources with knowledge of the matter said that Santander was planning to cut 4,000 jobs, or around 14% of its total workforce in its home market, and close up to 1,000 branches, around 32% of its branch offices in Spain.
At the end of September, the bank had 28,797 employees, including at its company headquarters on the outskirts of Madrid, and 3,110 branches across the country.
The sources said another 1,000 staff would move on to different jobs within its Spanish branches.
Though the number of branches since the financial crisis in 2008 has nearly halved, Spain is one of the countries with the highest number of branches per 100,000 adults in the world, at nearly 50, according to the International Monetary Fund.
Although those who live in Spain commonly find branches understaffed offering a very slow service.
Among other Spanish lenders, Sabadell , the country’s fifth-biggest in terms of assets, is planning to reduce costs at home, while speeding up a cost-cutting plan at its British arm TSB.
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