UniCredit to Relocate Retrained Staff from Central Offices to Network, Sources Report

By Valentina Za

MILAN – UniCredit is set to make a substantial investment in retraining 600 employees, who will mostly be transitioned to the bank’s branch network. This decision comes as CEO Andrea Orcel aims to streamline the central offices and enhance the sales force, according to two sources.

The second-largest bank in Italy initiated discussions with unions on September 6 regarding 1,000 voluntary early retirements and the reskilling program for these staff members. This strategic move follows Orcel’s view that it is necessary to reduce the workforce in central offices after previous cuts affected the branch network.

Speaking on condition of anonymity due to the confidential nature of the discussions, the sources indicated that the objective is to finalize an agreement by the end of October.

Recently, UniCredit revealed a potential 21% stake in Germany’s Commerzbank and expressed a willingness to explore a full takeover. A smaller corporate center could provide an opportunity for UniCredit to address any German concerns related to the deal by proposing concessions, such as maintaining Commerzbank’s German listing and preserving its base in Frankfurt.

According to three individuals familiar with past attempts by UniCredit to acquire Commerzbank, the possibility of establishing dual headquarters in Germany and Italy was considered.

Italian government support for UniCredit’s expansion efforts is contingent upon the bank maintaining its central operations in Italy, sources previously noted.

One of the sources reported that the average cost of the early retirement package proposed by UniCredit amounts to around 270,000 euros. Traditionally, Italian banks replace half of the senior staff departing early with younger employees; however, UniCredit will focus solely on hiring new personnel for its branches.

This approach aligns with Orcel’s strategy since he took the helm in 2021, emphasizing increased revenue from the sale of financial products while reducing executive positions. Almost all of the 3,000 individuals hired by UniCredit in Italy since 2022 have been assigned to the branch network.

The investment in reskilling will require significant funds to cover both the costs of training and the salaries of those who will be engaged in full-time training for several months.