Santander reduces workforce by approximately 320 employees, according to reports

Santander, the Spanish banking giant, has announced a significant reorganization in its U.S. operations, aiming to streamline its business and focus more on digital capabilities.

The reorganization, announced in September, consolidates Santander's retail and commercial business into one global unit and creates a global digital consumer banking division. As part of this restructuring, the bank has cut approximately 320 roles, accounting for between 2.4% and 2.7% of its U.S.-based workforce. The layoffs are primarily focused on Santander's retail operations.

Despite the job cuts, Santander is not standing still. The bank has hired more than 100 bankers in 2023 through October, with most of those roles in the U.S. In fact, more than half of the bankers hired are former Credit Suisse employees, indicating a strategic move to bring in experienced talent. Santander aims to hire 150 employees to build out its investment banking operations in the U.S.

Santander's Chair, Ana Botin, has emphasized this digital focus. She announced her intention to build a digital bank with branches via an Instagram post in February 2023. This digital focus was also highlighted at Santander's investor day around last year.

The bank is seeking to stem a 48% drop in profits last year among its businesses in the U.S. market. Apart from its retail presence, Santander's profits were affected by a 49% rise in provisions. The reorganization includes purchasing licensing rights, but the specific details are not given.

Santander is providing support to the affected employees throughout the process. The bank is working to provide internal opportunities, where possible, for the affected employees. The person who will take over the role to expand Santander's investment banking operations in the USA has not been specified.

In a positive note, Santander aims to launch a fully digital platform in its U.S. consumer and commercial units this summer. This move is expected to further strengthen Santander's digital capabilities and position it for future growth in the U.S. market.

Despite the challenges, Santander remains committed to its U.S. operations. The staffing model update at Santander impacts a small percentage of its branch colleagues. Santander historically had a strong presence in auto lending, and it is expected that this focus will continue in its digital strategy.

In conclusion, Santander's reorganization and job cuts are part of a broader strategy to focus more on digital capabilities and simplified processes. The bank is investing in digital capabilities and hiring experienced talent to drive its growth in the U.S. market.

Santander reduces workforce by approximately 320 employees, according to reports