Italian labor union has allowed Intesa Sanpaolo to reduce its headcount by almost 4,000, The Wall Street Journal reports. The agreement allows 3,000 staff members, many qualifying for early retirement, to quit the bank voluntarily or with incentives.
Intesa Sanpaolo will recruit new staff with permanent contracts after the reductions. Out of the 10,000 surplus headcount, the Italian bank can retrain 5,000 employees to take up sales-oriented roles for insurance products, mortgages and financial advisors. The deal will help the bank slash labor costs by at least €300 million from 2014.