Santander cuts some 300 jobs in US branches in shift to digital

BANCO Santander has minimize roughly 320 jobs within the United States because it seeks to focus extra on digital operations, in response to a supply conversant in the matter.

Spain’s largest lender laid off about 2.7 per cent of US staff in current days, out of a complete workforce of about 11,800, in response to the supply, who requested to not be recognized as a result of the matter will not be public. The dismissals are centered on the financial institution’s retail operations within the nation, the supply stated.

“We are evolving our US business, investing in digital capabilities and simplified processes to adapt to changing customer needs,” Santander stated in response to questions from Bloomberg. “These steps have resulted in an update to our staffing model that impacts a small percentage of our branch colleagues. We will continue to support them throughout this process and are working to provide internal opportunities, where possible,” it stated, with out offering additional particulars.

Although Santander is greatest generally known as a retail financial institution with giant department networks in a number of international locations, it has been pushing in recent times to focus extra on digital operations in markets the place it doesn’t have a robust place, such because the US. Its major retail markets embody Spain, Brazil and the United Kingdom.

The job cuts come at the same time as Santander expands its funding financial institution within the US, with some 200 hires over the previous yr or so. The lender has sought to make the most of a wave of layoffs on Wall Street to draw bankers, notably from Credit Suisse, because it seeks to achieve heft and supply present company purchasers higher companies, in keeping with what it already presents in different international locations.

Santander’s US enterprise is greatest recognized for its auto financing operations nevertheless it additionally operates as a retail financial institution with branches throughout 9 states on the east coast, in response to its web site. The community is generally a results of the acquisition of Sovereign Bancorp greater than a decade in the past. The financial institution final yr employed Christiana Riley, a longtime Deutsche Bank government, as head of its North American and Mexican operations.

The US reported 932 million euros (S$1.4 billion) in internet earnings final yr, accounting for 8.4 per cent of total group income. BLOOMBERG

Source: www.businesstimes.com.sg”