Spain’s CaixaBank Set to Cut 7,000 Jobs After Bankia Takeover

(Bloomberg) -- Spanish lender CaixaBank SA is seeking to cut about 7,000 jobs after taking over of smaller rival Bankia SA, according to people with knowledge of the matter.

The bank’s management and workers’ representatives agreed at a meeting on Tuesday to form a negotiation committee on the cuts and will meet next on April 20, a spokesman for the lender said, declining to give details on the number of jobs to be lost.

Spanish lenders are seeking to cut costs as margins come under pressure from low interest rates and an economic contraction caused by the coronavirus pandemic. Spain’s government last week trimmed its 2021 annual economic growth forecast to 6.5%.

CaixaBank has more than 51,000 employees following the integration of Bankia earlier this year. Larger rival Banco Bilbao Vizcaya Argentaria SA will also start talks with unions this month to cut about 3,000 jobs, according to newspaper El Pais.

©2021 Bloomberg L.P.