UniCredit to shift retrained staff from central offices to network, sources say
Italy's second-biggest bank started talks with unions on Sept. 6 over 1,000 voluntary early retirements and the reskilling of 600 staff. The moves come after Orcel said it was time to lighten the central offices after earlier cuts hit the network.
UniCredit is set to make a substantial investment in retraining 600 staff members, who will primarily be reassigned to the Italian bank's branch network, as CEO Andrea Orcel seeks to streamline central offices and enhance the sales force, according to two sources on Friday.
The second-largest bank in Italy initiated discussions with unions on September 6 regarding 1,000 voluntary early retirements and the reskilling of 600 employees. These changes follow Orcel's statement that it is time to reduce the size of central offices after previous cuts affected the branch network.
Speaking anonymously due to the confidential nature of the discussions, the two sources indicated that the aim is to reach an agreement by the end of October.
This month, UniCredit announced a potential 21% stake in Germany's Commerzbank and expressed openness to discussing a full takeover.
A streamlined corporate center could benefit UniCredit in addressing German opposition to a deal by offering concessions, such as maintaining Commerzbank's German listing and preserving its Frankfurt headquarters.
Three individuals familiar with previous UniCredit attempts to acquire Commerzbank noted that the possibility of establishing twin headquarters in Germany and Italy had been considered.
Sources close to the matter previously informed Reuters that the Italian government supports UniCredit's expansion strategy, provided that the Milanese bank retains its central functions in Italy.
One of the sources on Friday estimated the average cost of the early retirement package proposed by UniCredit to be around 270,000 euros.
Typically, Italian banks replace half of the older employees leaving early with younger hires; however, UniCredit plans to hire only new branch staff, according to the other source.
This approach aligns with Orcel's strategy since he took over in 2021, focusing on increasing revenue from the sale of financial products while reducing executive roles.
Nearly all of the 3,000 individuals hired by UniCredit in Italy since 2022 have been for the branch network.
The retraining effort will require significant investment, covering both the costs of training and the labor expenses for staff who will be engaged in full-time training for several months, as noted by one of the sources.
($1 = 0.8963 euros)
