AI Revolution Forces Italian Bank to Implement 9,000 Job Cuts

Italian Bank, Intesa Sanpaolo to Implement 9,000 Voluntary Job Cuts Amid AI Expansion

Italy’s prominent banking institution, Intesa Sanpaolo, has reached an agreement with labor unions to facilitate 9,000 voluntary job reductions, representing roughly 10% of its workforce. This decision is primarily motivated by the increasing integration of artificial intelligence (AI) and digital transformation within the industry.

In parallel, the bank has announced plans to onboard approximately 3,500 young professionals by mid-2028, specifically targeting roles within wealth management. The bank outlined that this initiative is designed to ensure a generational transition without any social repercussions, while also reinforcing the sustainability of its future outcomes through a robust business model adept at navigating the evolving landscape of digitalization and AI.

Intesa Sanpaolo anticipates that these strategic adjustments will yield annual savings of €500 million (approximately $540 million) in personnel expenses starting in 2028.

Of the job cuts, about 7,000 will take place in Italy, while the remaining positions will be affected in international branches. To accommodate these departures, the bank plans to record a charge of €350 million against its fourth-quarter earnings; however, it asserts that this provision will not impact its forecast for a net profit exceeding €8.5 billion in 2024.

During midday trading in Milan, Intesa Sanpaolo’s shares showed little movement, remaining flat.