Saxo Bank to cut jobs in the digital age 

Announcement comes just days after Davos business leaders warned of the threat to white-collar jobs

Saxo Bank, a Danish bank that specialises in online trading, is cutting jobs in a drive to “digitise” and “streamline” its business – just days after warnings at Davos that up to a third of roles in financial services could be at risk thanks to automation and artificial intelligence.

Group CFO Steen Blaafalk said in a statement on January 25 that the decision “should be seen in the light of our ongoing efforts to streamline and digitise a range of processes in the bank”.

A spokesman confirmed the process would impact the bank’s UK operation: “At Saxo Capital Markets UK Ltd. a small number roles are at risk of redundancy. We will be working with the individuals through a consultation period and as with normal practice, we will be looking for suitable alternative roles within the organization. Terminations, if any, can only be confirmed following the consultation period.”

Saxo said that overall, it will be cutting 50 jobs across the 1500-strong group, amounting to 3% of its workforce, with “the aim to reduce fixed costs”. Just over 30 positions will be lost in Denmark, a spokesman confirmed.

He added that the restructuring affects all business areas of the bank including marketing, sales and various corporate functions and said that the onboarding of new clients is increasingly done online. He said Saxo Bank has no plans to cut any offices.

Blaafalk added that it is “sad to have to say goodbye to good employees who have all made large contributions to the bank but it has been necessary to adjust the cost base”.

Digitisation and the automation of white-collar jobs was a theme at the Davos conference of world business leaders last week.

Huw van Steenis, global head of strategy at UK fund manager Schroders, conducted a survey of professional and financial services executives at Davos “which suggested they are looking to automate 10-30% of activities in three to five years”.

Saxo Bank, which is just under 30% owned by private equity firm TPG Capital, showed a net profit of DKK 158.2 million (€21 million) in its interim results for the first half of 2016.

The co-founders Kim Fournais and Lars Seier Christensen each own a 25.71 stake, while the remaining stakes are held by Sinar Mas Group and a number of current and former employees of the bank.

Source: Financial News – Saxo Bank to cut jobs in the digital age

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