The Italian bank UniCredit will cut 8000 jobs over the next four years and will pay investors 2 billion euros by buying back its own shares. That was announced by CEO Jean Pierre Mustier on Tuesday at the presentation of a strategic plan for the period up to and including 2023.
The Milan bank is scrapping a total of 9 percent of the workforce, among other things by closing 500 branches. In times of negative interest rates, UniCredit has difficulty raising sales. Mustier therefore wants to free up money for shareholders by reducing costs and working more efficiently.
The austerity operation is expected to yield 1 billion euros in savings. The costs of € 1.4 billion will be booked in 2019 and 2020.