UniCredit plans to invest significantly in retraining 600 employees who will then be largely transferred across the Italian bank’s branch network, as managing director Andrea Orcel downsizes central offices and strengthens the sales force, they said. two sources said Friday.
Italy’s second-largest bank began negotiations with unions on September 6 regarding 1,000 voluntary early retirements and the requalification of 600 employees. The moves come after Orcel said it was time to lighten up central offices after previous cuts hit the network.
Speaking on condition of anonymity due to the confidential nature of the matter, the two sources said the aim was to reach an agreement before the end of October.
UniCredit this month unveiled a potential 21% stake in Germany’s Commerzbank and said it would be willing to discuss a full takeover.
A reduced business center could be an advantage if UniCredit seeks to overcome German opposition to a deal by offering concessions such as maintaining Commerzbank’s German listing and safeguarding its Frankfurt roots.
Three people familiar with UniCredit’s previous attempts to buy Commerzbank said the option of twin headquarters in Germany and Italy had been explored.
The Italian government only supports UniCredit’s expansion strategy on the condition that the Milan-based bank retains its central functions in Italy, sources familiar with the matter told Reuters.
One of the two sources estimated on Friday that the average cost of early retirement under the conditions proposed by UniCredit was around 270,000 euros.
Italian banks normally replace half of the older staff who take early retirement with younger hires. UniCredit will only hire new employees at its branches, the other person said.
This is in line with Orcel’s strategy which, since its arrival in 2021, has pushed UniCredit to make more profits from the sale of financial products, while cutting management positions.
Almost all of the 3,000 people hired by UniCredit in Italy since 2022 have been employed in the branch network.
Re-skilling would require a significant investment to cover both the cost of the apprenticeship itself and labor costs for staff who will be trained full-time for several months, one of the sources said.
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