Italy’s biggest bank to axe 14,000 jobs in major overhaul
UniCredit has announced a radical restructuring plan to raise €13 billion in capital to return the Italian bank to profitability. It includes cutting 11 percent of its workforce and getting rid of its vast debt portfolio.
The bank also plans to embark on the country’s biggest share issue in the first quarter of 2017.
UniCredit intends to remove €17.7 billion worth of bad debt from its balance sheet to increase profits and dividend payouts.
The bank wants to increase its capital ratio to above 12.5 percent in 2019.
As part of the three-year plan, the lender will cut an additional 6,500 jobs, bringing the total to 14,000. UniCredit expects the measure will bring €1.7 billion in annual savings.
“We are taking decisive actions to deal with our non-performing-exposure legacy issues to improve and support recurring future profitability to become one of Europe’s most attractive banks,” Chief Executive Jean Pierre Mustier said in a statement.
The bad loans are to be sold in two parts, one managed by Fortress Investment Group and the other by PIMCO, according to Reuters. The Italian bank would retain minority stakes in each.
thats a lot of jobs..robots will take over their roles..
“UniCredit intends to remove €17.7 billion worth of bad debt from its balance sheet to increase profits and dividend payouts.”
and where will that go?