Insider Spotlight
The group is cutting jobs at digital subsidiaries UnionDigital Bank and UBX as it moves to absorb both businesses into its main banking operations.
The bank is helping affected employees explore new jobs, including possible opportunities across the wider Aboitiz Group.
UnionDigital continues to face financial pressure from years of losses, although lending has grown and bad loans have eased.
The shake-up affects two important pillars of its technology push: UnionDigital, one of the Philippines' original six licensed digital banks, and UBX, which was established to develop financial technologies beyond traditional banking.
The update follows UnionBank’s announcement last week that it would absorb UnionDigital and UBX into its main operations, a move expected to streamline staffing across both units.
UnionBank workforce cuts that first surfaced on Reddit but declined to disclose how many employees were affected, stressing that the changes concern the subsidiaries rather than UnionBank's main banking operations.
Helping employees through the transition
“The planned integration of UnionDigital and UBX into UnionBank will involve organizational changes, including adjustments to workforce requirements. We recognize the impact these changes may have on affected employees and are committed to supporting those affected,” UnionBank said in a statement on Wednesday.
These include possible openings within the broader Aboitiz Group, one of the country’s biggest conglomerates, whose businesses span power, generation food, real estate, airports and telecommunications towers.
The changes also come at a difficult time for affected employees, with a slowing economy and an uncertain job market making the transition even more challenging.
“Many actually have outstanding offers already, and we continue to encourage those affected to take advantage of the assistance and support we have made available to them,” UnionBank said.
A changing digital playbook
UnionBank's restructuring comes despite a 53-percent surge in nine-month profits to P9.9 billion, with revenues climbing 8 percent to P65.5 billion as the lender puts greater emphasis on costs and profitability.
Despite this growth, UnionBank’s shares have struggled to gain ground, with the country’s eighth-largest private lender trading at P21 each, down more than 20 percent since the start of 2026.
An industry insider familiar with the bank's digital strategy said some leaders had long been skeptical of its technology push, while rising bad loans and costs added pressure to reassess the digital bank business, which started commercial operations in 2022.
The insider said this led to previous exploratory talks to sell Union Digital, which has roughly 100 employees. There were several interested parties, including GCash operator Mynt, although a deal did not materialize.
“Of course, there’s birth pains but there was also first mover advantage,” the industry insider said.
Digital ambitions meet financial reality
Last Oct. 23, UnionBank announced plans to absorb both subsidiaries into its main banking operations, marking a major shift for a lender known for its digital innovations and nearly 20 million retail customers.
The restructuring could also bring additional costs or write-offs, although UnionBank has yet to disclose any estimates.
The restructuring follows years of financial pressure on the banking sector and newer players such as UnionDigital, as high interest rates and inflation strained borrowers and increased the risk of unpaid loans.
Last December, UnionBank approved a P1.3-billion capital infusion into UnionDigital, releasing P400 million in January and another P100 million in July 2026 to support its operations, bank records showed.
Since launching in 2022, UnionDigital has built up P9.4 billion in capital stock but accumulated a P5.64-billion retained earnings deficit by June 2026, reflecting years of losses, data from the Bangko Sentral ng Pilipinas showed.
Its loan portfolio nevertheless grew to P6.7 billion from P4.3 billion in March, while its bad-loan ratio improved to 21.39 percent from 29.51 percent, although problem loans remained elevated, BSP data showed.
—Edited by Miguel R. Camus
