Banco do Brasil to Close 361 Branches and Release 5,000 Staff

RIO DE JANEIRO, BRAZIL – In a statement sent to investors, the institution announced that it will close 361 branches and offices, as well as resizing the workforce with voluntary severance packages (VSP). Membership is expected to decrease 5,000 employees.

The bank is planning to adapt its service network in 361 municipalities, maintaining its own branches in 221 and Mais BB banking correspondents in the rest. Under the new model, 1.3 million customers will now have an exclusive relationship manager for digital interaction through the Fale.Com channel.

As a result of the pandemic, digital interaction between customers and the bank has increased. The bank’s app reached 4.7 million users, a growth 273% higher than the pre-pandemic period. In parallel, WhatsApp support reached almost 600,000 calls per day.

“The service network reorganization is aimed at adapting to the new customer profile and behavior and includes, in addition to the structure optimization measures described above, other reviewing and resizing efforts in the boards, support areas and network, focusing on service specialization and expanding the digital solutions offer,” said the bank.

Deactivation involves 112 branches, seven offices and 242 service points. In addition, 243 branches will be converted into service points and another eight points will be converted into branches.

Account holders affected by the change will be notified by SMS of their new branches or managers. Cards and passwords will remain effective. The bank has launched a website to clarify the transition to its customers. Information is also available through WhatsApp – (61) 4001-0001 and Call Center 0800 729 5291, Monday through Friday, from 8 AM to 8 PM.

Resignation encouraged

With service digitization and branch closures, BB launched two programs to encourage voluntary resignation to downsize the bank’s workforce.

According to the institution, the Employee Adaptation Program aims to readjust the bank’s workforce by relocating employees from over-staffed sectors to others with available positions. Employees may move laterally and also choose to resign. The Extraordinary Termination Program covers all employees who meet the prerequisites.

“The measures aim at optimizing workforce distribution, equating vacancies and overstaffing in the bank’s facilities, contributing to cost reduction and improving operational efficiency.”

The net annual savings estimated with the cost reduction measures implemented by the bank are R$353 million in 2021 and R$2.7 billion by 2025. The resources saved with the voluntary dismissal plans, which will be disclosed after the completion of the membership period, scheduled for February 5th, have not been added to the figure.

Banco do Brasil is seen by Minister of Economy Paulo Guedes as a potential privatization asset, but the bank is not currently listed to move to the private sector. The privatization focus for 2021 is on other large companies, such as Eletrobras and the Correios (Brazilian Post).