Banco Santander SA (NYSE: SAN ), one of the world's largest retail banks, is set to undergo a significant reorganization under the leadership of CEO Hector Grisi. The restructuring aims to streamline operations and reach profitability targets, a move that might lead to a reduction in management layers and potential job cuts, according to sources familiar with the matter.
The Spanish bank announced on Monday that it will merge individual countries' retail and commercial banking businesses into a new global unit, to be led by Daniel Barriuso. Additionally, a new digital consumer bank area will be established under the direction of Jose Luis de Mora.
This reshuffle will result in five units: retail and commercial, digital consumer bank, payments, wealth management and insurance, as well as corporate and investment banking. The restructuring closely resembles a plan unveiled last week by Citigroup (NYSE: C ) CEO Jane Fraser, which also involved major reshuffling into five main businesses and eliminating regional chiefs.
Grisi, previously heading the Mexico business, took over as CEO at the start of 2023. His tenure has been marked by numerous hires and management changes, including the departure of Antonio Simoes, who was seen as a potential CEO candidate. In April, Santander hired Christiana Riley, a former Deutsche Bank AG (NYSE: DB ) executive, as head of its North American and Mexican operations starting October 1.
An expansion into U.S. investment banking is also on the horizon for Santander, with several new hires from Credit Suisse (SIX: CSGN )'s ranks. The bank plans to align its financial results reporting to this new model starting in January 2024. The five global businesses will become the primary segments for the group while country- and region-specific data will transition to secondary segments.
This strategic shift follows Santander's adoption of a regional approach to managing its business in 2019 and the roll-out of the 'One Santander' strategy a year later. The latter aims to increase connectivity across the bank's operations spanning from Spain to the United Kingdom, Brazil, and the United States.
Banco Santander (BME: SAN ), with approximately 212,000 employees and a market capitalization of €55.7 billion ($59.5 billion), remains under the executive chairmanship of Ana Botin since her father's death in 2014.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.