EMCC European Monitoring Centre on Change



Geographic Location

Country: European Union


Sector: Financial services
Financial and insurance activities
64 - Financial service activities, except insurance and pension funding
Number Employed: 149000
Group: UniCredit

Employment Effects

Announcement Date: 05-07-2006
Planned Job Reductions min: 6840
Planned Job Reductions max: 6840
Type of Restructuring: Offshoring/Delocalisation
Foreseen End Date: 31-12-2008
Planned Job Creation: 5000
Direct Dismissals: 6840

Additional Information

The biggest bank of Italy, UniCredit announced the intention to reduce the number of its full-time staff (currently 133,740 employees) by 6,840 jobs by the end of 2008 as part of a plan to boost annual earnings by 27% following last year’s acquisition of German group HVB. An additional 5,000 hires will also be made, the bulk of which will come from expansion in Russia in areas such as investment banking and customer credit. UniCredit was one of the first banks to realise the potential for growth in central and eastern Europe. One of the main benefits of the HVB takeover was the acquisition of a large presence in many countries in the region. Most of the projected job cuts will come from those growing banking markets. However, UniCredit now wants to grow organically in Russia and other markets in the region as the sale prices of banks have risen dramatically. UniCredit and HVB have in present 28 million clients in 19 countries all-over the world, with more than 7,000 branches and 149,000 employees. According to the statements of the bank representatives, a recovery in demand in the bank’s main western European markets of Italy, Germany and Austria will help support further growth in mortgages and consumer lending. Also, the company will save approximately EUR 60 million by 2008 from the merger of its Polish units.