Danske Bank To Let 1600 People Go Within the Next 6-12 Months

Danske Bank

writer icon Wilma Johansson     ISB   |   Business     🕐 13. Oct. 2020

Part of Danske Bank’s 2023 plan is to significantly reduce costs in order to become an even more efficient and competitive bank.

As a part of this, Danske Bank is now offering employees in most departments in Denmark the option of applying for a voluntary redundancy agreement on special and favourable terms.

“It is never easy to reduce the number of colleagues, and we will do our best to ensure that we do this in the most decent and respectful way. However, we need to adapt to the structural changes that the financial sector is experiencing, and to remain competitive in a low-margin and highly competitive market, we simply have to reduce our costs,” said Chris Vogelzang.

Danske Bank expects to reduce the number of positions across business units and markets by up to 1 600 during the next 6-12 months. Part of the reduction is expected to be achieved through, among other things, the above-mentioned voluntary redundancy agreements and natural attrition.

“We will start by giving colleagues who are considering trying something else in their work-life or who might want to retire, a better opportunity to do so. Specifically, we offer them to do so on better terms and with greater flexibility than would otherwise have been the case. Together with the existing hiring freeze, we hope that it can help reduce the number of actual layoffs at a later time,” said Karsten Breum, Member of the Executive Leadership Team and Head of Group HR at Danske Bank.

Danske Bank employs more than 22 000 people in total, up from almost 20 000 at the end of 2017, of which about 11 000 are employed in Denmark.

The option of applying for a voluntary redundancy agreement will be available until 25 October 2020, announces Danske Bank.

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