Wednesday was a day of truth for Unicredit. Italy’s largest and most international bank announced a drastic restructuring to save €1.6 billion, or $1.72 billion, in the next three years.
Unicredit Chief Executive Federico Ghizzoni presented shareholders with a plan to slash 18,200 jobs at the troubled bank, with about 6,000 layoffs coming from the sale of asset management unit Pioneer and the bank’s Ukraine operations.
The makeover is even more radical than the 10,000 job cuts expected, but won’t affect Unicredit’s German subsidiary Hypo-Vereinsbank that much. About 1,200 administration jobs there will be lost, which was in line with forecasts.