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Hypo Real Estate to cut one-third of workforce
The last one turns of the light! HRE headquarters in Munich. Photo: DPA

Hypo Real Estate to cut one-third of workforce

Published on: 19 Dec 2008 12:22 CET

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HRE, which employs around 1,800 people, was also in talks on other measures to protect its activities with the German government's financial stabilization fund, or SoFFin, the magazine Der Spiegel reported.

A spokesman for the bank contacted by AFP declined to comment on the report. On December 10, the specialist in property financing said it would receive €30 billion ($42.7 billion) in state loan guarantees rather than €20 billion under a government rescue plan for the banking sector.

HRE, Germany's biggest victim of the banking crisis, and its Irish subsidiary Depfa, were caught in a liquidity crunch that worsened after the US investment bank Lehman Brothers declared bankruptcy in mid September.

HRE has already benefited from a rescue plan worked out by the government and the German central bank worth €50 billion.