Spain's Caixabank planning significant job cuts: sources

Wed Feb 20, 2013 1:37pm EST
 

MADRID (Reuters) - Caixabank (CABK.MC: Quote) is planning significant job cuts, union and bank sources said on Wednesday, after a media report that Spain's third-biggest lender was planning 4,000 redundancies.

Caixabank's staffing levels have jumped in the past two years following the purchase of smaller rivals.

"There is no number on the table as yet and there will be attempts to try and make the cuts as painless as possible," a source at the bank said.

Barcelona-based Caixabank, the commercial banking business of financial services group La Caixa, declined to comment.

Online news service El Confidential had earlier said Caixabank was planning 4,000 redundancies, citing sources close to the group.

Caixabank had 32,625 employees at the end of 2012, compared with nearly 27,000 a year earlier, while its network grew by over 1,000 branches.

The Catalan bank was one of the most active buyers in the consolidation of Spanish banking which has seen the number of lenders cut by 80 percent to around 10.

Among other purchases, Caixabank bought Banca Civica and rescued lender Banco de Valencia BVA.MC last year, although the latter has not yet been fully integrated.

Caixabank is one of Spain's healthier lenders, and it managed to weather the country's property crash without taking state aid, although its profits fell nearly 80 percent last year.   Continued...

 
Caixabank's logo is seen on top of the company's headquarters in Barcelona, October 26, 2012. REUTERS/Albert Gea