Intesa Sanpaolo to Cut 9,000 Jobs Amid AI and Digitalization Push

Intesa Sanpaolo Announces Major Workforce Restructuring

Italy's leading bank, Intesa Sanpaolo, has unveiled a significant restructuring plan that will see 9,000 jobs cut – approximately 10% of its workforce – as the company adapts to the increasing role of artificial intelligence (AI) and digitalization in the banking sector 1

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Job Cuts and New Hires

The bank has reached an agreement with trade unions for these voluntary job cuts, which will be implemented by 2027. Of the 9,000 positions to be eliminated, 7,000 will be from Italian operations, while the remaining 2,000 will affect international units 2

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Simultaneously, Intesa Sanpaolo plans to hire 3,500 young employees by mid-2028, primarily to strengthen its wealth management division. This includes 1,500 global advisors for network commercial activities 3

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Financial Implications and Strategy

The restructuring is expected to generate annual savings of €500 million ($540 million) on staff costs starting from 2028. To finance the departures, the bank will take a €350 million charge against its fourth-quarter earnings. However, Intesa Sanpaolo maintains its guidance for a net profit above €8.5 billion in 2024 1

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Adapting to Technological Advancements

This move reflects the broader trend in the banking industry, where technological advances, particularly in AI, are reducing the need for staff in back-office functions. The bank aims to create a more resilient business model in the face of increasing digitalization and AI adoption 4

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Union Perspective and Monitoring

Paolo Citterio, a FABI (Italian banking union) representative within Intesa, stated that the accord provides initial answers to help workers facing the digital transformation reshaping the banking sector. A new committee has been established to monitor the impact of growing digitization on Intesa's operations 4

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Broader Industry Trends

Intesa Sanpaolo's restructuring follows a similar move by UniCredit, Italy's second-largest bank, which recently negotiated early retirement for 1,000 corporate center employees while committing to hire 500 new staff members 4

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Investment in Renewable Energy

In a related development, Intesa Sanpaolo has received a €500 million counter-guarantee from the European Investment Bank. This will enable the bank to create a bank guarantees portfolio worth about €1 billion, supporting power grid interconnection and supply chain for new EU wind farm projects 3

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