Danske Bank, the biggest lender in Denmark, has decided to significantly reduce its workforce. This Thursday, the bank revealed a plan to seize the contracts of around 1600 of its employees. The reduction is said to continue for the next 6 to 12 months.

This move comes at a time when the Danish body has planned on reducing its overall operational cost, which is a two-year long strategy, that will most probably be completed somewhere by the end of 2023.

As of now, Danske Bank is the employer of around 22 000 people, of which half are based in Denmark, and the rest scattered in different countries. Since 2017, the bank has seen an increase in the number of its workforce with a total of 2000 new jobs.

Things are not left on a sad note, however. Danske Bank will be offering its laid off employees a redundancy agreement, which includes a redundancy pay and a notice period.

It is never easy to reduce the number of colleagues, and we will do our best to ensure that we do this in the most decent and respectful way…However, we need to adapt to the structural changes that the financial sector is experiencing, and to remain competitive in a low-margin and highly competitive market, we simply have to reduce our costs” Chris Vogelzang, CEO, commented

Since June of last year, the Bank has let go 1000 of its employees. It is currently not hiring anyone.