Santander Considers Cutting 4,000 Jobs While Hiking Capital To Execute Its Dividend Of 0.1 €/Share

The rights related to the bonus capital hike with which Santander will pay its next dividend, a final dividend of 0.1 euros/share charged against 2019 results, began to trade on the stock exchange this week. There are two options available to shareholders: 1) Sale of rights received free of charge, at the price at which they are trading on the market when they are sold. The trading period for the rights will be extended – officially- until 30 November. 2) Collection of the dividend in shares, receiving one free share for every 23 old ones. In order to be entitled to receive the dividend in any of the two ways, you had to be a Santander shareholder at the close of last Friday’s session. Santander’s share price rose 2.9% on Friday and 33.5% over the week, but has recorded a decline of 36% for the year.

Meanwhile on Friday, Santander Spain’s management communicated to the unions the need to cut 4,000 jobs, equivalent to 13% of the workforce. It also intends to relocate a further 1,090 employees in other companies within the group. The figure is higher than the 3,000 job cuts initially considered. It reflects the desire to tackle the post-Covid stage and the paradigm shift in the financial services sector with more guarantees of success.