Banco Sabadell announces the closure of 320 branches

Banco Sabadell announces the closure of 320 branches

Banco Sabadell announces the closure of 320 branches. Image: Twitter

Banco Sabadell has announced the closure of 320 of its branches.

Banco Sabadell announced to the unions today, Tuesday, September 7, that it plans to close 320 offices this year and wishes to negotiate the worker’s Employment Regulation File (ERE).

This adjustment implies a reduction of the branch network of 20% compared to the beginning of 2021. According to union sources, the company, chaired by Josep Oliu, has announced that the process will finally affect 1,936 workers

Of these, more than 1,600 will come from the branch networks, while the rest will from corporate centres and administration.

The company has justified implementing the ERE in the need to improve its profitability, in the drop in activity in the branches and in the increase in digital access by customers. The unions rejected the measure and demanded an alternative, such as voluntary adherence to a “termination plan.”

Sabadell held the second of the four meetings planned with the workers’ representatives to address the second ERE that it is planning to execute in less than a year. The company explained to union representatives that it will close 320 offices and that 172 of the current branches will become “advanced savings banks.”

With this concept, they refer to offices that will have an ATM and the operations necessary for day-to-day operations always available, but that will offer other services only at certain times. In addition, they will be directed by the manager in charge of another nearby office.

The bank has also delivered a document with arguments that justify the ERE, which affects 12.5% ​​of the current workforce of the bank which originated in Catalonia.

The company blames economics, noting that its profitability is 3%, while the cost of capital is three times higher (above 9%).

These figures are reflected in the drop in activity across branches (68.7% in the main operations carried out on the network compared to 2017) and the increase in the use of the digital environment by customers (the volume of online customers is 19.2% higher than 2017).

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Ron Howells

Ron actually started his working career as an Ophthalmic Technician- things changed when, during a band rehearsal, his amplifier blew up and he couldn’t get it fixed so he took a course at Birmingham University and ended up doing a degree course. He built up a chain of electronics stores and sold them as a franchise over 35 years ago. After five years touring the world Ron decided to move to Spain with his wife and son, a place they had visited over the years, and only bought the villa they live in because it has a guitar-shaped swimming pool!. Playing the guitar since the age of 7, he can often be seen, (and heard!) at beach bars and clubs along the length of the coast. He has always been interested in the news and constantly thrives to present his articles in an interesting and engaging way.