Danske Bank cuts 250 jobs in Denmark

As the axe falls hard at home, even more layoffs could be in the offing worldwide

Danske Bank announced 250 layoffs in Denmark yesterday. The bank, Denmark’s largest, is making the cuts as part of efforts to meet a 1.1 billion kroner cost-saving target for next year.

"We have let 250 people go, mostly in non-customer service positions,” the bank said in a statement. The job cuts affect support functions in Denmark, including the human resources and legal departments.

Most of the fired employees will leave the bank immediately.

READ MORE: Danske Bank abandoning Irish customers

Spreading the pain worldwide
Danske Bank, which has around 20,000 employees, announced in 2011 it would shed 2,000 positions by the end of 2014.

The bank was hit by Denmark's housing bubble burst, which sent the economy into a tailspin and left the country with the world's highest household debt per capita. Danske Bank’s new head, Thomas Borgen, took the helm in September. Speaking at the time, he said the bank "continues to operate in a challenging environment" and needed to cut costs.

While bank spokesperson Kenni Leth said that the domestic cuts were “a large step” towards reaching the cost-cutting targets, he wouldn’t rule out more job reductions in the future.

Børsen reported that “reliable sources” said that 350 more employees would soon be cut from Danske Bank offices outside of Denmark. The firings have not been made as yet, but negotiations with unions have started.

Danske Bank declined to confirm that international layoffs were pending.