Intesa Sanpaolo banks on AI: Massive job cuts planned

The renowned Italian banking group Intesa Sanpaolo has announced an ambitious plan for restructuring and cost reduction, which includes the elimination of 9,000 jobs by 2027. As part of their strategy to strengthen the business model through the integration of digitalization and artificial intelligence (AI), this measure aims to achieve a significant transformation. In their home country of Italy, 7,000 of the planned job cuts are designated, while the remaining 2,000 positions will affect international subsidiaries. Interestingly, these changes are expected to be implemented without social costs. A preliminary agreement negotiated with various unions enables an early retirement program for 4,000 employees. Significant unions like the group union delegations FABI, FIRST CISL, FISAC/CGIL, UILCA and UNISIN were involved in the negotiations. The agreement focuses on generational change through substantial investments in technologies to make customer service models more efficient. Additionally, Intesa Sanpaolo's plan includes comprehensive training and retraining measures for employees to meet the new demands of digital competencies. An attractive voluntary departure offer is being made to all employees, and 3,500 young professionals are to be hired on a permanent basis to strengthen proximity in the area of wealth management and protection. With an additional reduction of 3,000 positions in Italy and a net reduction of 2,000 positions among international subsidiaries by 2027, Intesa Sanpaolo remains committed to its forward-looking orientation. The bank plans to book a one-time charge of approximately 350 million euros net of taxes in the fourth quarter of 2024 to support this comprehensive realignment.