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Nordea’s EUR 315bn wealth unit joins bank's hiring freeze

One of the biggest asset managers in the Nordic region is no longer hiring.

Snorre Storset, who oversees Nordea’s EUR 315b wealth and asset management unit from Oslo | Photo: PR / NORDEA

Snorre Storset, who oversees Nordea’s EUR 315b wealth and asset management unit from Oslo, said a “temporary hiring freeze” affecting Nordea “will include wealth.” Until now, the wealth operations had been shielded from the reductions hitting the rest of the organization, and Storset declared as recently as late October that he was hiring.

That’s because Scandinavia is home to “the fastest growing private banking markets in Europe,” he said at the time. Now, Storset says there’s no scope to look at external candidates.

“We cannot put an exact figure on the cost savings of this measure, but from a general viewpoint we consider it the most responsible solution both in terms of cost savings and towards our employees,” he said. “We can also ensure that our employees get more opportunities to move to other positions internally,” Storset said.

Nordea Chief Executive Officer Frank Vang-Jensen, who started in the autumn, has made it his mission to go over every cost at the bank to eradicate all unnecessary expenditure. That’s on top of about 6,000 job cuts announced by his predecessor, Casper von Koskull. Nordea estimates that about 70 percent of its cost base relates to people.

The bank has been moving IT and administrative work to Poland and Estonia, in an effort to gain access to cheaper labor. But those operations will also be hit by the hiring freeze, according to the bank.

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