By Joshua Kirby
Banco de Sabadell SA has reached an agreement with labor unions to cut fewer jobs than initially planned, the Spanish bank confirmed late Friday.
The redundancies will affect a maximum 1,605 employees and have been agreed by all sections of the unions on the negotiation committee, Sabadell said. Labor representatives the day before had put the lowered number at 1,440. The lender had initially wanted closer to 1,900 cuts, according to media reports in September.
The layoffs will cost around 296 million euros ($312 million) before tax, to be financed by the sale of bonds, Sabadell said, adding that the process has been booked in the third quarter this year.
The bank said it will save at least EUR100 million a year from the restructuring, as set out in its strategic plan. Sabadell is one of several Spanish banks aiming to significantly trim their workforces amid consolidation in the sector and the rise of digital banking.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby