Union Bank of the Philippines (UnionBank) is reducing its workforce across its digital subsidiaries, UnionDigital Bank and UBX, as it prepares to integrate both entities into the parent bank's core operations.
The restructuring involves organisational changes and workforce rightsizing, although the bank has not disclosed the number of employees affected. UnionBank clarified that the job cuts are confined to its digital subsidiaries and will not affect the workforce of its main banking operations.
In an official statement, the lender said it is extending outplacement support to affected employees, including opportunities to transition into vacant positions across the wider Aboitiz Group. A significant number of impacted employees have already received internal job offers, the bank added.
The workforce reductions follow UnionBank's decision to absorb UnionDigital and UBX into its core operations, subject to regulatory approval from the Bangko Sentral ng Pilipinas (BSP). The bank said operational continuity remains unaffected, with UnionDigital customers continuing to access their accounts and applications without disruption.
UnionDigital began commercial operations in 2022 as one of the Philippines' six initially licensed digital banks, while UBX was established to develop financial technology initiatives beyond traditional banking operations.
However, UnionDigital has faced financial challenges despite expanding its lending business. Regulatory filings cited by local media show that the digital bank accumulated a deficit of PHP 5.64 billion as of June 2026, despite having PHP 9.4 billion in capital stock.
Its loan book expanded to PHP 6.7 billion, while its non-performing loan (NPL) ratio declined to 21.39 per cent in June from 29.51 per cent in March. However, the NPL ratio remains elevated, pointing to continued asset-quality challenges.
UnionBank had earlier approved a PHP 1.3 billion capital injection into UnionDigital in December 2025 to support its operations. Of this amount, PHP 400 million was disbursed in January 2026, followed by another PHP 100 million in July 2026.
The integration comes as the parent bank reports stronger financial performance. UnionBank recorded a 53 per cent increase in net income to PHP 9.9 billion for the first nine months of 2026, as it sharpens its focus on cost discipline, operational efficiency and profitability.