UniCredit plans to retrain and redeploy 600 employees By Investing.com

UniCredit is investing heavily in retraining 600 employees and operations, relocating the majority of them to its Italian branch network. This initiative is part of CEO Andrea Orcel’s strategy to streamline central offices and strengthen the bank’s sales capabilities. The retraining program followed discussions about 1,000 voluntary early retirements that began on September 6, 2023.

The bank’s strategy is to reduce its corporate headquarters. This could prove beneficial in the event of a potential takeover of Commerzbank (ETR:) as it could help allay German concerns. UniCredit could ensure that Commerzbank maintains its stock market listing and its Frankfurt roots.

Insiders report that UniCredit has considered the possibility of dual headquarters in Germany and Italy in previous attempts to take over Commerzbank.

The Italian government has signaled its support for UniCredit’s expansion plans, but on the condition that the bank retains its central functions in Italy. The average cost of the early retirement package proposed by UniCredit is estimated at around €270,000.

In line with Orcel’s strategy, the bank will focus primarily on branch positions in future hiring. This continues the trend that has been followed since 2021 of strengthening the distribution of financial products while at the same time reducing management positions.

Since 2022, almost all of UniCredit’s 3,000 new hires in Italy have been placed in the branch network.

Retraining requires significant investments to cover both the training costs and the disadvantages faced by employees during their training phase, which lasts several months. UniCredit aims to finalize an agreement on these plans before the end of October.

Reuters contributed to this article.

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