Brazil state-controlled Banco do Brasil on Monday said it had approved a plan to “optimize” its workforce and cut down on “excess” at its bank units as it seeks to reduce costs, according to a security filing.
Brazilian banks are increasingly seeking to cut down on personnel and brick and mortar branch costs as they face increased competition from digital fintechs such as Nubank.
Banco do Brasil said it would offer buyouts to some of its workers, but did not say how many and said it would disclose the financial impact of the decision by the end of August. The bank did say it was not changing its earnings outlook for 2019.
Banco do Brasil expects to turn 333 of its bank branches into simpler physical locations, which usually have lower costs.