Santander, a leading Spanish bank (SAN.MC), has recently implemented a reduction of approximately 320 positions within its United States operations, aiming to enhance its focus on digital services, according to a source familiar with the situation.
Santander Fires 320 Employees in the US on Digital Strategy
The reduction accounts for about 2.4% of its overall U.S. workforce, totalling 13,489 employees across the bank’s group operations in the country. The decision to streamline its workforce comes as part of Santander’s broader initiative to adapt and innovate in response to the dynamic demands of the banking industry, particularly the shift towards digital banking services.
In a statement, Santander articulated its strategic shift towards digitalisation within its U.S. operations, emphasising the bank’s commitment to investing in digital infrastructure and streamlining processes to meet its customers’ evolving needs better.
The bank noted, “This strategic realignment necessitated adjustments to our staffing model, affecting a modest proportion of our branch staff.” These changes are integral to Santander’s strategic plan to introduce a fully integrated digital banking platform in the United States.
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This development was initially brought to light by Bloomberg News. It aligns with Santander’s strategic ambitions to debut a comprehensive digital platform in the United States during the upcoming summer, targeting both consumer and commercial sectors.
Santander’s U.S. segment, now the fifth-largest within the group, is undergoing expansion efforts, particularly in its investment banking division, aiming for substantial growth. This expansion comes amidst challenges, including increased loan losses and rising funding expenses faced by its U.S. subsidiary, notably within its consumer division.
For the year 2023, the U.S. division experienced a 48% decrease in net profit, dropping to 932 million euros. The downturn was largely driven by a substantial 49% increase in provisions, underscoring the financial pressures and operational hurdles faced by the bank in this key market.
