This follows UniCredit’s sale of €1.2bn of non-performing loans to private equity firm AnaCap in September this year.
The job cuts are expected to be achieved through lay offs in Italy and Austria, as well as the bank’s German back office and investment bank, according to media sources.
UniCredit is to launch a revised strategic plan that will aim at increasing profits amid mounting pressure from investors and regulators, The Financial Times reported.
The bank is reportedly in talks with Vienna-based bank Bawag to sell its Austrian retail operations. However, it is not certain whether the transaction takes place.
UniCredit is under pressure due to low interest rates on its lending, volatility in key markets in Ukraine and Russia, and weak growth in Italy.
The Wall Street Journal reported that UniCredit will aim at generating more revenues from fees and commissions, as well as by pushing more asset management and insurance products at its branches.
The bank may also tackle job cuts once it enters into partnership with asset manager Pioneer and Santander Asset Management.
UniCredit employs over 147,000 employees in more than 8,500 branches in17 countries across the globe.
The bank’s key markets are Italy, Austria, Russia, Southern Germany and Bulgaria. It has investment banking divisions in New York, London, Hong Kong, Milan, Munich, Vienna, Budapest and Warsaw.
Image: UniCredit headquarters in Rome. Photo: courtesy of Blackcat / Wikipedia.
