Nordic banking group Nordea to shed 2,000 jobs

Aug 29, 2011, 12:12 GMT

Stockholm - Nordic banking group Nordea on Monday said it had opened talks with unions to shed 2,000 jobs as part of efforts to reduce costs.

In Denmark, Finland and Sweden it would cut between 500 and 650 employees, while between 200 and 300 jobs would go in Norway. The reductions would take place this year and 2012. The group currently has more than 34,000 employees.

'By initiating measures to increase profitability early, we safeguard our good rating, competitive funding and thus our ability to offer products and services at the right price to our customers,' chief executive Christian Clausen said in a statement.

Nordea said it hoped to achieve the cuts through voluntary agreements and natural turnover. The bank said it planned other cost-cutting measures amid rising costs over global regulation.

Unions were critical, citing the bank's good profits.

The envisaged savings were made 'at the expense of the personnel,' said Steinar Nickelsen of the main white-collar union that organizes Nordea employees in Sweden.

In Finland, the labour confederation STTK cancelled a planned seminar with Nordea and STTK head Mikko Maenpaa said the announcement was devastating for employees who had helped develop Nordea into a successful business, broadcaster YLE reported.