MADRID, Reuters – Spanish bank Sabadell reached an agreement to let go of up to 1,605 workers in its home country, a smaller number than originally planned 1,900. This was according to the most prominent union Comisiones Obreras, (CCOO), on Friday.

A spokesperson for the union said that the bank had met certain demands of the union such as limiting the number of laid-off workers to 1,380.

The union spokesperson stated that 1,380 workers would take redundancy leave, and the bank would agree to it. He also said that 1,605 employees would have to be cut if they decide not.

Sabadell did not respond to our request for comment.

Spanish banks are doing the same as other European counterparts and cutting down on costs. As ultra-low interest rates eat away at their profitability, they’re shifting to online banking.

Sabadell, in September presented unions with plans to reduce 1,936 jobs, close 496 branches or partly shut them down, as part of a shift toward online banking.

This is the second reduction of workforce by the lender in less than one year, following recent cuts to 1,817 Spanish jobs.

According to one source, 320 of the Spanish bank branches will be closing. That’s almost a fifth, and the remainder will stay open for a few hours each week.

Sabadell, which had 141 million euro in cost savings in 2020 and has now generated 141 million in cost savings in the past three years, stated that it expects additional cost savings in Spain of approximately 100 million euros.