Intesa Sanpaolo SpA is replacing thousands of staff with younger hires to set the firm up for the use of artificial intelligence, demonstrating how much the technology is impacting workers across the financial industry.
The Italian lender plans for 9,000 departures by 2027 — almost 10% of its workforce — while hiring 3,500 “young people” by June of the following year, a step that could save it €500 million ($539 million) annually, it said in a statement Wednesday.
The idea is to speed up “generational change in the context of the technological transformation” as part of an effort to create “a resilient business model in the digitalization and artificial intelligence scenario,” Intesa said.
The announcement from Italy’s largest bank comes just two weeks after domestic rival BPER Banca SpA said it will cut its workforce by about 10%, partly because of the productivity boost that it expects to get from deploying more AI tools. It adds to a growing number of lenders that bet on the technology to improve efficiency and reduce costs.
Intesa Chief Executive Officer Carlo Messina has pledged to increase the firm’s profitability by curbing costs, and said the bank is counting on insurance, asset and wealth management to help lift fee income as the tailwind from high interest rates starts to fade.
The reductions, which were announced after striking an accord with the country’s trade unions, are planned to include 7,000 staff in Italy and 2,000 in Intesa’s international divisions. 4,000 of the exits should be through retirements or through accessing the Solidarity Fund, according to the statement.
As a result, Intesa expects to book charges of 350 million euros, net of tax, in the fourth quarter. It kept intact its full-year forecast for net income of more than €8.5 billion.
1,500 of the new hires will be advisers to help “ensure greater proximity to customers, specifically in wealth management and protection,” Intesa said.
The agreement with the unions also seeks to free up time “for professional development through a major upskilling/reskilling training program to better address the need for new widespread digital skills and new professions.”
Photograph: An Intesa Sanpaolo bank branch in Brescia, Italy. Photo credit: Francesca Volpi/Bloomberg
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