Caixabank Plans to Cut 3,000 Jobs in Restructuring

    MADRID--Spanish retail bank Caixabank SA (CABK.MC) said Monday it plans to cut 3,000 jobs as it adapts to a deep economic downturn and the recent takeovers of two smaller rivals.

    The Barcelona bank said in a press release that it has started a negotiation period with labor unions on how to carry out the cuts, which it said are "necessary to adapt to the current environment and improve efficiency."

    Spain's banking sector has been shrinking for the past two years in the wake of the bust of a massive real estate bubble. Lending is contracting sharply and fee income is also dropping due to a protracted economic recession.

    Banks that were bailed out by the state such as Bankia SA (BKIA.MC) are being forced to cut thousands of jobs and close branches in exchange for the aid. Late last year, Banco Santander SA (SAN), Spain's largest lender by assets, merged its two retail banking operations in the country, a move that will also affect thousands of jobs.

    Caixabank, which has more branches than any other Spanish lender, is also reducing its work force to digest the takeovers of ailing lenders Banca Civica SA and Banco de Valencia SA (BVA.MC).

    Write to Christopher Bjork at