UniCredit has revealed plans to cut 14,000 jobs by 2019 as part of restructuring plans.
The bank aim to save €13 billion through the restructuring which will also see the unloading of €17.7 billion in bad loans through a securitised portfolio.
Total cost of the restructuring is targeted at €12.2 billion during Q4 of 2016.
An additional 6,500 redundancies are included as part of the plan leading to total redundancies of 14,000 by 2019.
Nearly a thousand branches will also be closed contributing to a projected decrease of personnel costs of €1.1 billion by 2019.
“We have developed a pragmatic plan based on conservative assumptions, with tangible and achievable targets, dependent on cost and risk management, levers which are firmly under our own control,” said Jean Pierre Mustier, CEO at UniCredit S.p.A
“We are going to build on our existing competitive advantages such as our unique Western, Central and Eastern European network as well as boosting the benefit of our simple commercial banking model. All these actions will allow us to generate a return on tangible equity of above 9% in 2019 and allow for a cash dividend pay-out policy of between 20 to 50%,” said Mustier.