Strategy
Danske Wields Jobs Axe; Names New Unit

The bank is slashing costs to recover its financial position, as part of a 2023 strategy plan. Jobs will be shed via voluntary redundancy and natural attrition, it said. Danske has been through an expensive compliance saga over major money laundering issues.
Danske Bank,
which is pushing to turn around its fortunes after a damaging
compliance scandal, said yesterday it is setting up a commercial
leadership team. It is also shedding a total of 1,600 roles,
offering voluntary redundancy to staff. That compares with a
total payroll of more than 22,000 people.
As previously announced, the new simplified structure with two
business units – Personal & Business Customers and Large
Corporates & Institutions – will take effect from January 2021,
at which time the new CLT will also be established, Danske said
in a statement.
“I am confident that the team with their strong experience from
our business across the Nordic markets will increase our
execution power as one bank and achieve faster time to market.
This will help us to become an even faster and more competitive
bank for our customers and further strengthen our position in the
market,” Chris Vogelzang, the bank’s chief executive, said.
Danske Bank is also introducing two new chief customer officers
for Denmark and the Nordic countries.
From January, Thomas Mitchell will move from his current role as
head of retail banking in Denmark, while Trond Mellingsæter will
take on this role in addition to his current role as country
manager in Norway.
As many as 1,600 jobs will go as part of a cost-cutting drive
over the next 12 months, the bank said. At least 1,000 employees
have already left the bank since June last year (source:
Reuters, 8 October).
“It is never easy to reduce the number of colleagues, and we will
do our best to ensure that we do this in the most decent and
respectful way. However, we need to adapt to the structural
changes that the financial sector is experiencing, and to remain
competitive in a low-margin and highly competitive market, we
simply have to reduce our costs,” Vogelzang said.
The bank said it expects to cut some of the jobs via voluntary
redundancy agreements and natural attrition. The lender is
being probed in several countries, including the US, for about
€200 billion ($235 billion) in payments made via its branch in
Estonia between 2007 and 2015, many of which the bank has said
were suspicious. Danske replaced its chief executive and
made a number of other changes in the wake of a money laundering
scandal centred on the Baltic state of Estonia. The affair
snowballed into a broader European money laundering episode,
raising calls for tougher AML controls across the European
Union.
New group
The commercial leadership team is effective from January and will
work alongside the ELT consisting of the following:
Mark Wraa-Hansen (DK), head of personal customers
Denmark;
Stojko Gjurovski (SE), head of personal customers Nordic and
country manager Finland;
Johanna Norberg (SE), head of business customers Denmark & Nordic
and country manager Sweden;
Trond Mellingsæter (NO), country manager Norway;
Lars Alstrup (DK), head of products and solutions personal and
business customers Denmark & Nordic;
Paul Martin Gregory (UK), head of corporate and institutional
banking;
Claus Harder (DK), head of fixed income, currencies &
transactions;
Atilla Olesen (DK), head of capital markets;
Linda Olsen (DK), head of technology and services for personal &
business customers;
Rob de Ridder (NL), head of technology and services for large
corporates & institutions;
Kim Larsen (DK), head of group communications, brand and
marketing; and
Christoffer Møllenbach (DK), head of group finance.