Business Scandals

Scandalously known Danske Bank cuts employees

Denmark’s largest bank, Danske Bank A/S, will reduce 1.6 thousand jobs as part of its measures to save money amid rising costs and negative interest rates.

“It’s never easy to reduce colleagues and we’ll do everything we can to make sure it’s done in the most honest and respectful way possible,” said Danske CEO Chris Vogelzang, quoted by Bloomberg.

“However, we need to adjust to the structural changes that are taking place in the financial sector,” he said.

Danske is still under for a major money-laundering that has led to a spike in compliance costs for the bank. The bank is under increasing pressure from authorities and regulators to improve its performance against a backdrop of scandals.

Vogelzang said cuts are necessary to remain competitive in the market. The measures are part of the so-called 2023 plan, which aims to improve the bank’s performance and make it more competitive.

Currently, the staff of Danske has about 22 thousand people, compared to 20 thousand in 2017, which is partly due to the expansion of the compliance department. Approximately 11,000 employees work in Denmark, where the company’s headquarters are located. “We just have to cut costs,” Vogelzang said.

Danske Bank is Denmark’s largest commercial bank and one of the leading banks in Northern Europe. The parent company is Danske Bank Group. Headquartered in Copenhagen, Danske Bank is a leading commercial bank in Northern Europe.

Shares of Danske Bank are becoming more expensive during trading in Copenhagen.

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