Danske Bank to Cut 1,600 Jobs to Reduce Costs

Pedestrians pass a Danske Bank A/S bank branch in Aalborg, Denmark.

Photographer: Cathrine Ertmann/Bloomberg
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Danske Bank A/S plans to cut 1,600 jobs -- more than 7% of its entire workforce -- in a cost-saving maneuver that pushed its stock higher but drew dire warnings from staff representatives.

Copenhagen-based Danske says the cuts are necessary to save money amid spiraling compliance costs and long-term negative interest rates.