Money & Banking

Danske Bank cuts hundreds of jobs to cut costs

Bloomberg February 27 | Updated on February 27, 2020 Published on February 27, 2020

Danske Bank says it has no choice but cut hundreds of jobs across the organisation as it struggles to save money. Denmark’s biggest lender, which is dealing with a spike in compliance costs amid US and European investigations into money laundering allegations, is getting rid of 400 positions, primarily within staff and back-office functions, it said on Thursday.

Karsten Breum, Danske’s head of human resources, said the bank is taking a number of initiatives to adjust and simplify parts of our organisation. “Cutting jobs is not easy, but a necessary part of our efforts to reduce costs in order to ensure that we remain competitive.”

The bank admitted in late 2018 that it failed to properly screen about €200 billion ($219 billion) in non-resident flows at its Estonian operations, and said that much of that figure was suspicious. A number of Danske’s top executives have since had preliminary criminal charges brought against them, including the former chief executive, and Danske is bracing for hefty fines. Its share price has slumped by about half since the beginning of 2018.

Published on February 27, 2020
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