UniCredit to spend 300 million euros on staff departures, say sources.

UniCredit to Use Restructuring Charges for Voluntary Exits

UniCredit, the Italian bank, plans to use restructuring charges to fund voluntary exits for some of the additional 1,000 employees who requested early retirement last year. The bank reported stronger-than-expected quarterly results and raised its 2023 profit goal above €6.5bn ($7.2bn), including €300m in restructuring charges. UniCredit will use the money to cut staff costs by axing jobs in central offices and hiring young people to strengthen its commercial franchise and boost its digital capabilities. The bank had initially planned to cut 800 jobs, but the number rose to 925, and it was unable to meet another 1,000 requests from employees willing to leave. UniCredit allocated 80% of the 2022 early retirement packages to people from its central offices, raising complaints from unions.

UniCredit’s Restructuring Strategy

• UniCredit will use restructuring charges to fund voluntary exits for some of the additional 1,000 employees who requested early retirement last year.
• The bank reported stronger-than-expected quarterly results and raised its 2023 profit goal above €6.5bn ($7.2bn), including €300m in restructuring charges.
• UniCredit will use the money to cut staff costs by axing jobs in central offices and hiring young people to strengthen its commercial franchise and boost its digital capabilities.
• The bank had initially planned to cut 800 jobs, but the number rose to 925, and it was unable to meet another 1,000 requests from employees willing to leave.
• UniCredit allocated 80% of the 2022 early retirement packages to people from its central offices, raising complaints from unions.

UniCredit underwent years of restructuring under CEO Jean Pierre Mustier, but cost cuts remain a key plank of new CEO Andrea Orcel’s strategy. Costs stood at 39.2% of income at the end of March, down 7.4 percentage points from a year before. Full-time staff totalled 75,040 at end of 2022, down by 3,531 over the year.