Santander: what’s behind banking giant’s job cuts?

Orlando was readying a response to questions from MPA detailing the reasons behind the cuts. She subsequently sent answers to MPA’s questions on Wednesday morning. Gathering from her response, the 53 job cuts in the Philadelphia region may be just the tip of the iceberg.

Read more: Santander reveals job cuts

“Unfortunately, this does impact employees, and we estimate that less than 4.5% of the bank’s (SBNA) employees will be impacted,” Orlando wrote. “We are fully supporting our colleagues with severance benefits, career transition services, and opportunities to pursue other open roles at Santander.”

Orlando described the company’s broader plan of action in the US: “The Santander US strategy is to simplify our business. We have stopped new originations of home mortgage and home equity loans because the company hadn’t achieved scale in those areas and the capital and resources could be better spent on other areas, such as auto lending and segments of business and commercial banking.”

MPA learned that the Santander US strategy is to simply its process, stopping new originations of home mortgage and home equity loans because the company hadn’t achieved scale in those areas. Moreover, the firm decided capital and resources could be better spent on other areas, such as auto lending and segments of business and commercial banking.