Spanish banking group Banco Santander SA has initiated discussions with labor unions regarding a proposal to offer a voluntary early retirement scheme to as many as 3,000 employees in Spain, according to local media reports published on Wednesday.

This move comes as financial institutions across Europe are preparing to address the impact of artificial intelligence. AI is anticipated to streamline operations but also reduce staffing needs, particularly in administrative roles.

A spokesperson for Banco Santander SA confirmed that consultations with unions are underway to establish a framework for voluntary early staff departures, but did not provide specific figures.

Informed sources indicate the bank's initiative could affect between 10% and 15% of its approximately 20,000-strong workforce in Spain.

In a strategic update released in February, Banco Santander SA stated that its various AI initiatives are projected to generate cost savings and revenue gains exceeding €1 billion ($1.14 billion) by 2028.

Similar to other European banks, Banco Santander SA has reduced its headcount by approximately 14,000 employees over the past two years, bringing total staff numbers below 200,000 as part of its cost-reduction efforts.