Nordea to cut 6,000 jobs

Nordea to cut 6,000 jobs
Nordea's offices in Stockholm. Photo: Jonas Ekströmer/TT
Banking giant Nordea, which recently stirred debate with its controversial HQ move from Sweden to Finland, has announced plans to cut around 13 percent of its total workforce.

Nordea said it would reduce its workforce by 4,000 employees and 2,000 consultants across its Nordic markets. It currently employs around 31,900 people.

“We are almost two years into the transformation of Nordea. Since investments are starting to deliver, it is time to enter the next phase, in which we see that we can structurally bring down costs and increase efficiency. This transformation would not have been possible without our strong balance sheet and robust business model,” said CEO Casper von Koskull as he presented its third-quarter report on Thursday.

“In the coming years we will achieve economies of scale by taking our centres of excellence to the next level and create efficient and automated operations. To achieve this we also need to continue a cultural transformation into a purpose-led and values-guided organization,” added von Koskull, but he warned of potential geopolitical risks and imbalances in the property market.

Nordea reported operating profits of 1,090 million euros on Thursday, down five percent on the same period last year, and a total operating income of 2,373 million euros, compared to expenses of 1,204 million euros. The results were mostly in line with expectations.

The bank announced last month that it would move its headquarters from Sweden to Finland in order to be part of the eurozone’s banking union, and following a conflict with the Swedish government over proposed tax increases and regulations for resolution and deposit guarantees.

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