Two major banks, UBS and NatWest, have recently made headlines with plans for mass layoffs affecting thousands of employees within Poland's banking sector. This significant reduction is not only reshaping the local banking environment but also raising questions about the future of these financial institutions' presence in the country.
Swiss banking giant UBS has announced its intention to lay off approximately 1,200 employees over the next two years as part of its restructuring initiatives. This decision affects about 7% of its workforce in Poland, where the bank currently employs 8,700 individuals. UBS's layoffs are planned for the years 2025 and 2026, as reported by Gazeta Wyborcza. Of note, the UBS will also close its office at Atrium II in Warsaw, choosing to focus its operations on Krakow and Wroclaw. Kinga Marczak, president of HRS-IT, described these layoffs as 'atypical' event, especially since UBS reported higher-than-expected profits for 2024.
UBS is not alone, as British bank NatWest is also exiting the Polish market, with plans to completely shut down operations by the end of 2025. This will result in the loss of approximately 1,600 jobs. The decision to withdraw stems from the termination of a specific financial crime project operated by the Polish branch, leading to no available positions for the affected personnel, confirmed NatWest’s spokesperson on February 12, 2025. Simultaneously, the bank aims to streamline operations and concentrate its efforts on its financial crime operations based in the UK and India.
According to the reports, up to 45% of the jobs at NatWest are set to be eliminated, with the remainder transitioning to the bank's centers in the UK and India. This restructuring is part of broader efforts within NatWest to increase operational efficiency and simplify its organizational structure. Paul Thwaite, the newly appointed CEO of NatWest, emphasized the importance of enhancing efficiency across their operations since taking up his role at the beginning of 2024. This organizational change is directly connected to the bank's strategic direction following its recovery from the financial crisis of 2008.
Collectively, the layoffs across both banks will result in the loss of approximately 2,800 jobs, marking one of the most significant employment contractions within the Polish banking sector to date. Observers note the gravity of the situation extends beyond mere job loss, hinting at potential shifts within the financial industry and its operational strategies across Europe.
Anne Thompson, financial industry analyst, highlighted the broader employment trends, stating, 'The banking sector is adjusting to new economic realities, with higher interest rates forcing banks to reassess their operational costs. It's not just about global strategy; it's about local responses to economic pressures.'
Sources confirm UBS and NatWest's decisions are part of their long-term strategies aimed at ensuring stable growth and operational efficiency. UBS has stated it's working on solutions to assist affected employees, offering severance packages beyond those mandated by Polish labor laws. The bank is also engaging with employees about future support options, including career counseling and job placement services.
For employees of NatWest, the end of operations signifies more than just job loss; it marks the closure of career paths within one of the UK's largest banking institutions. Many affected employees have already begun to weigh their options and seek employment opportunities elsewhere. Several career services have begun to emerge to assist these individuals.
These developments occur against the backdrop of increasing instability within the financial sector, as institutions globally pivot to more resilient business models following the tumultuous years shaped by the COVID-19 pandemic and subsequent economic pressures. Observers anticipate this trend will not be isolated to UBS and NatWest, but may be echoed by other banks grappling with similar challenges.
Analysts expect the fallout from these layoffs to ripple through the Polish job market and economy, as thousands of families could face uncertainty. The story will continue to evolve, as more banks assess their positions moving forward and the market responds to the shifting roles of these banking giants.
While the immediate effects are felt by employees losing their jobs, the greater question remains: what is the future of banking operations not just in Poland but throughout Europe?