Spanish banking biggie Banco Santander has reportedly begun talks with workers’ unions over a plan to offer early voluntary retirement to up to 3,000 employees in the European country, reported the Spanish newspaper Expansion.
Santander’s latest move also comes as banks across the continent brace for the impact of AI, which is expected to streamline operations while reducing staffing needs, particularly in administrative roles.
As per the expansion, Santander’s discussions with unions were ongoing to set a framework for voluntary early retirements for staff, with no specific targets having been set regarding how many people would be affected.
Comisiones Obreras, the biggest union in the Spanish banking sector, said it had started negotiations with the financial institution. While the discussions are set to continue until July 2026, the voluntary retirements, if they kick in, will extend until 2028. However, both Santander and Comisiones Obreras have refused to link these “retirements” with any mandatory restructuring plan.
“In 2025, around 800 staff in Spain left Santander under a similar retirement scheme. This year around 400 have left so far,” the union spokesperson said.
Expansion said, citing sources familiar with the negotiations, that the potential staff reduction of between 2,000 and 3,000 employees could affect 10% to 15% of the lender’s around 20,000 employees in its home country.
Taking into account the headcounts at the corporate centre, which houses Santander’s global headquarters, the number of employees could rise to 34,000.
“Under the scheme being negotiated, Santander is offering 74% of gross annual pay for employees aged 55 to 57, and 76% for those aged 58 and above,” the union representative said.
In its strategy update in February 2026, Santander said that initiatives in the AI field would bring more than 1 billion euro (USD 1.14 billion) in cost savings and revenue by 2028.
Like other European banks, Santander has already cut its workforce to reduce costs by about 14,000 employees in the last two years, bringing the global staff count below 200,000.