Recently, through a statement released Tuesday by the workers’ commissions union, Banco Sabadell announced plans to cut 1,800 jobs in Spain, representing 11 percent of the country’s workforce, as part of an efficiency and digital transformation plan based on early retirement and voluntary departures.
The directors of the fifth largest Spanish bank suggested the number during the meeting with the union on the proposed job cuts.
“The second meeting of the negotiating table took place today to discuss the departure of 1,800 people that management would like to carry out,” declared the union.
The bank, which had almost 16,900 employees at the end of September, announced in October that it would launch a cost-cutting plan by the end of the year, which provides for job cuts, primarily through voluntary layoffs and early retirement.
This move is part of a wave of restructuring in the country’s banking sector since the global financial crisis of 2008 and late 2019. According to the CCOO, the Covid-19 pandemic only played a marginal role.
Spanish banks cut nearly 100,000 jobs between 2008 and the end of 2019, nearly 37 percent of their workforce in 2008, said Joan Sierra, head of banking at the union.
The Covid-19 pandemic “This can be partly influenced by the poor projections the income statement could have due to the negative impact of the pandemic, such as an increase in bad loans.”said the manager, as described The economist.
Spain’s largest bank, Santander, is expected to announce this week how many people will be affected by new job cuts at the financial institution. The company is expected to have around 3,000 jobs.
Bitcoin and DeFi on the rise
The financial industry has seen numerous structural changes due to technological developments. In this way, the sector has grown by leaps and bounds, switching traditional banking to digital channels and offering ever simpler, more agile and safer processes.
While in the first nine months of this year 2020 the net profit of Banco Sabadell fell by 74 percent to 203 million euros due to provisions of more than 1,000 million euros in order to counter this risk of a failure of the decentralized finances (DeFi) reached another milestone as their locked down value exceeds $ 13 million and one DeFi sector, as highlighted, has been gaining ground in recent months Cryptorank on your official account today.
Additionally, the surge in decentralized funding has found a catalyst not only in the crises some banks and countries are going through, but also in the rebound in Bitcoin price, which rose to nearly $ 16,000 to the year’s highs ago.
Likewise, retail investors turned to Bitcoin last month, with the monthly volume of crypto assets increasing 16 percent for the first time since August. In the particular case of Spain, the increase in the use of Bitcoin is much more moderate.
Bitcoin saw impressive gains for the first time since 2018 in October and became the top ten largest crypto assets with a surge in trading in October.
The crypto asset has taken a break in the $ 15,500 zone, while DeFi has grown at an impressive 1,800 percent since the start of the year.
Currently, the TVL hits a record on all decentralized financial protocols (DeFi) and the metric has increased more than $ 2 million since early November. If current conditions in traditional banking are tightened, it is conceivable that DeFi will continue to be a viable option for many savers and the unemployed in the sector.