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AI and digitalisation to eliminate 9,000 jobs at Intesa Sanpaolo
Business and Economy

AI and digitalisation to eliminate 9,000 jobs at Intesa Sanpaolo

by  AFP 1 min read
All 9,000 job cuts are intended to be voluntary departures
All 9,000 job cuts are intended to be voluntary departures. Photo: MARCO BERTORELLO / AFP/File
Source: AFP

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Italy's leading bank, Intesa Sanpaolo, has reached a deal with trade unions for 9,000 voluntary job cuts -- around 10 percent of its workforce -- due to the expansion of artificial intelligence (AI) and digitalisation.

At the same time, the bank plans to hire by mid-2028 some 3,500 young new employees to work in wealth management, it said in a statement late on Wednesday.

The plan "aims at enabling generational change at no social cost" and the "further strengthening of future sustainability of the Group's results... with a resilient business model in the digitalisation and artificial intelligence scenario", Intesa Sanpaolo said.

The changes should lead to 500 million euros ($540 million) of savings annually on staff costs from 2028.

Some 7,000 of the job cuts are to fall in Italy and the rest in international units.

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The bank said it would take a 350-million-euro charge against fourth quarter earnings to finance the departures but that the provisions would not affect its guidance for a net profit above 8.5 billion euros in 2024.

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Intesa Sanpaolo shares were flat in midday trading in Milan.

Source: AFP

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