Nordea Bank to cut at least 6,000 jobs in fight to stay competitive

The Nordea Bank AB logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada on Oct 19, 2017.
The Nordea Bank AB logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada on Oct 19, 2017.PHOTO: REUTERS

COPENHAGEN (BLOOMBERG) - Nordea Bank said it will need to cut at least 6,000 jobs as the Nordic region's largest lender struggles to stay competitive.

The bank said about 2,000 of those will be consultants. In an interview with Bloomberg Television, chief executive Officer Casper von Koskull said the cuts reflect an evolution across the industry as banks rely more on digital services.

"This is creating, in my mind, the future bank and these cuts are the result of that, and I think this is something you will see in the whole industry going forward," he said.

Nordea will need to take a "transformation cost" of as much as €150 million (S$241.3 million) in the fourth quarter, to help deal with the cuts, von Koskull said in a statement on Thursday (Oct 26).

Nordea said in September that it will move its headquarters to Helsinki from Stockholm, after complaining about Sweden's strict regulatory environment. The decision means the Nordic region's only global systemically important lender will fall under the supervision of the European Central Bank.

Nordea now faces a backlash from Swedish clients seemingly angered by its move, as mortgage brokers in the country point to a mass exodus from the bank to its competitors.

Von Koskull said the bank is not seeing any clear fallout yet.

"The inflow of deposits in Sweden is unchanged in terms of the trend," he told Bloomberg Television. "So in the numbers I don't see it."