Monday June 22, 08:11 PM
German bank HRE announces 1,000 job cuts
BERLIN (AFP) - German bank Hypo Real Estate (Xetra: 802770 - news) said Monday it would cut 1,000 jobs and expected to lose hundreds of millions of euros in the second quarter of 2009 due to the world economic crisis.
"In two steps, the personnel will be reduced by about 1,000 employees in total" by 2013, the bank (HRE) said in a statement.
It added that it forecast a "substantial drop" in earnings in the second quarter of 2009, with losses of "at least hundreds of millions of euros (dollars)... due to the economic crisis" and would stay in the red in 2010.
It lost 382 million euros in the first quarter of 2009.
The German government stepped in to rescue HRE from collapse in the financial crisis.
This month the bank moved close to total nationalisation when shareholders approved a three-billion-euro capital increase to be subscribed by the state.
Germany already owned 47.3 percent of HRE's equity following a public offer for shares in May.
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