Major Brazilian private banks close 2,000 branches and cut 14,000 jobs

Brazil's three largest private banks—Itaú, Bradesco, and Santander—have significantly reduced their physical presence and workforce over the past year. In the 12 months leading up to June, approximately 2,000 service points were closed and 14,300 employees were laid off, a process analysts refer to as a "reduction of footprint."

Bradesco led in the number of physical branch and service point closures, while Itaú and Santander were the most active in personnel reductions. Specifically, Santander reduced its staff by 6,600, Itaú by 5,300, and Bradesco by 2,400 during the second quarter compared to the same period in 2025.

This restructuring is driven by the rise of digital banks and fintechs that operate with lower cost structures. Itaú President Milton Maluhy noted that demand for physical branches has dropped to a quarter of pre-pandemic levels. To adapt, major institutions are increasing investments in digital tools, such as Itaú's recently launched AI-driven financial copilot.