BayernLB to cut 5,600 jobs
AFP/DDP/DPA/The Local · 1 Dec 2008, 10:49
Published: 01 Dec 2008 10:49 GMT+01:00
Inside sources said the letter from bank leaders was sent out to the nearly 19,200 employees worldwide, saying that the cuts were “unavoidable,” but will be conducted in a “fair and transparent” manner.
The layoffs will be spread of the coming five years until 2013, the statement said, adding that some 1,000 key positions would be effected. The bank also plans to cut back operations, in particular in Asia, it said.
BayernLB was the first one to tap into the German government’s bank rescue package, getting a €5.4 billion capital injection from the government and one billion more from its regional shareholders. Meanwhile last Friday the troubled bank had said it would request some €10 billion from other sources.
"Our worst fears have been confirmed," head of public workers’ union Verdi in Bavaria, Josef Falbisoner, reacted to the announcement on Monday. "Politicians and management have created an unprecedented debacle," he said, adding that the workers were paying the price.
The state of Bavaria is set to become BayernLB's principle owner, along with a regional savings bank association.