Santander eyes 3,000 early retirements in Spain as AI reshapes European banking workforce

Santander Negotiates Major Workforce Reduction in Home Market

Santander has begun talks with unions over a plan to offer voluntary early retirement to up to 3,000 employees in Spain, according to Spanish newspaper Expansión 1

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. The potential headcount reduction could affect between 10% and 15% of the Spanish bank's roughly 20,000 employees in its home country 2

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. While Santander confirmed that discussions with unions are ongoing to establish a framework for voluntary early retirements, the company emphasized that no specific targets have been set 1

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AI-Driven Cost-Cutting Strategy Accelerates Across European Banking

The move comes as lenders across Europe brace for the impact of AI, which is expected to transform operations by streamlining operations while simultaneously reducing staffing needs, particularly in back-office roles and administrative functions 2

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. In its strategic update in February, Santander projected that cost savings and revenue from AI initiatives would exceed €1 billion ($1.14 billion) by 2028 1

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. This ambitious target underscores how deeply AI is reshaping the workforce reduction strategy at major financial institutions.

Ongoing Negotiations and Compensation Details

Comisiones Obreras, the largest union in the Spanish banking sector, confirmed it had started negotiations with the bank, which are set to continue until July 1

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. The talks focus on voluntary retirement extending until 2028, though union representatives stressed these are not part of a mandatory restructuring plan. Under the scheme being negotiated, Santander is offering 74% of gross annual pay for employees aged 55 to 57, and 76% for those aged 58 and above 1

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. In 2025, around 800 staff in Spain left Santander under a similar voluntary retirement scheme, while approximately 400 have departed so far this year 1

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Broader Context of Workforce Transformation

Like other European banks, Santander has already implemented significant cost savings measures by reducing its workforce by approximately 14,000 employees over the past two years, bringing the global headcount below 200,000 1

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. Taking into account the corporate centre, which houses the global headquarters, the number of employees in Spain rises to 34,000 . The current Santander early retirements in Spain represent the latest phase in this ongoing transformation, signaling that traditional banking roles continue to face pressure from automation and digital innovation. As AI capabilities expand, industry observers anticipate further workforce adjustments across the financial sector, with particular impact on administrative and processing functions that can be automated.