Swedbank to cut approximately 500 jobs across group

Swedbank is implementing a restructuring plan that will result in the reduction of approximately 500 jobs across its group. This includes about 100 positions within the Baltic states, where the bank currently employs more than 6,000 people.

Olavi Lepp, Swedbank's leader in Estonia, stated that the workforce reduction is linked to changes in work organization and a shift in investment scales. During a period of exceptionally high profitability several years ago, the bank increased spending on information technology development and data modeling projects, requiring additional specialists. As profitability has returned to more normal levels and large-scale expansion projects have slowed, the bank no longer requires the same number of employees.

While the bank is offering current employees opportunities to retrain and transition to other roles, Lepp noted that layoffs will be unavoidable. The bank is also monitoring the impact of artificial intelligence, which is currently being tested in over 90 applications within the group, as a factor that may change future staffing requirements.