Historically, CaixaBank has boasted the highest number of employees and offices of all Spanish banks. Despite maintaining these high operating costs, they can still brag that they have survived the biggest economic downturn in Spanish history thanks to a healthy balance sheet.
Now that financial reforms have created a clear future, at least for the near term, CaixaBank needs to adapt its payroll and infrastructure requirements to meet the demands of a new economic landscape and increase its operating efficiency. The bank, led by CEO Isidre Fainé, is considering cutting 3,000 jobs (9.2% of its current payroll) and closing between 500 and 800 branches. CaixaBank assures that it will enact cuts by not hiring new employees after workers retire and lowering incentives for older workers to stay on. The strategy will not have traumatic effects and makes sense for a company that is profitable now and wants to stay that way in the future.
