Spain’s Santander (SAN.MC), a prominent global banking institution providing a wide array of financial services including retail and commercial banking, wealth management, and corporate banking, has commenced discussions with unions regarding a plan to offer voluntary early retirement to potentially 3,000 employees in Spain. This strategic move aligns with a broader trend across European banks preparing for the operational impact of artificial intelligence, which is anticipated to streamline processes and reduce staffing requirements, particularly within administrative functions.
The bank confirmed that negotiations with union representatives are ongoing to establish a framework for these voluntary early retirements. While no specific targets for affected staff numbers have been formalised, Spanish newspaper Expansion, citing sources, reported that the potential reduction of between 2,000 and 3,000 employees could impact 10% to 15% of the lender’s approximately 20,000 employees in its home country. Comisiones Obreras, a major Spanish banking union, confirmed talks are set to continue until July, with voluntary retirements extending until 2028, stressing this is not part of a mandatory restructuring. In previous years, around 800 staff left under a similar scheme in 2025, with 400 departing so far this year.
Under the proposed scheme being negotiated, Santander is reportedly offering 74% of gross annual pay for employees aged 55 to 57, and 76% for those aged 58 and above. The bank indicated in its February strategy update that AI initiatives are projected to generate over €1 billion ($1.14 billion) in cost savings and revenue by 2028. Like many of its European counterparts, Santander has already undertaken significant workforce reductions, cutting approximately 14,000 employees globally over the past two years, bringing its total global staff count to below 200,000.
