By Carlos Lopez Perea 
 

Banco Bilbao Vizcaya Argentaria SA is set to kick off negotiations this week to cut staff in Spain to offset the impact of low interest rates and the coronavirus pandemic, according to a letter sent to employees that was seen by EFE Dow Jones.

Negotiations with workers' unions should begin on April 16 and the redundancy process would affect both central services and the commercial network, according to the letter.

The bank hasn't provided any official figures on possible layoffs as "it's all very preliminary," according to a source from the bank. However, some Spanish media outlets have reported the bank plans to cut more than 3,000 employees.

"Our sector is in a context of profound transformation marked by enormous competitive pressure, low interest rates, the accelerated adoption of digital channels by customers and the entry of new digital players," BBVA said in the letter.

 

Write to Carlos Lopez Perea at carlos.perea@dowjones.com

 

This story was translated in whole or in part from a ​Spanish-language version initially published by EFE Dow Jones, a partner of Dow Jones & Co.

 

(END) Dow Jones Newswires

April 13, 2021 10:51 ET (14:51 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.