Danske Starts Shifting Jobs Away From Scandinavia to Save Money

(Bloomberg) -- Danske Bank A/S is shifting jobs away from its home markets in Scandinavia, as it finds more ways to save money beyond an existing plan to cut 1,600 positions.

“A lot of our cost base is of course people,” Chief Executive Officer Chris Vogelzang said in an interview. He said Lithuania and India are examples of countries Danske can use to “move business or activity from A to B.”

Danske declined to provide specifics of the number of positions being moved. But some details were revealed on social media. “My role is moving to India” but “I'm not!” one Danske employee wrote.

Vogelzang has promised more cost cuts as he tries to live up to Danske's financial targets. In the fourth quarter, he unveiled a return on equity of just 2.6% for 2020, compared with the 9-10% he's promised shareholders they'll get in 2023.

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Danske has so far cut about 700 of the 1,600 jobs targeted in a plan announced in October. But Vogelzang says he can't rule out more measures will be needed to reduce staff beyond that program.

One Danske unit still hiring is compliance, amid ongoing investigations into allegations of money laundering. But, “if you look at the rest of the organization, the numbers are actually going down,” Vogelzang said.

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