Italian Bank UniCredit will cut about 12 thousand jobs

Moscow. October 30. INTERFAX.RU Italian Bank UniCredit is preparing to cut about 12 thousand jobs to improve profitability and capital, informs the Agency Bloomberg with reference to informed sources. According to them, strategic review of the Bank’s operations does not involve a placement of shares to increase its capital.

A month ago UniCredit was planning a reduction of 10 thousand workplaces, but has now revised the rate of dismissals to 12 thousand employees, or 9.4% of the entire state, the sources noted.

Reductions are likely to include layoffs of about 3 thousand people in Germany, as well as employees of the Austrian unit.

The planned rate cuts may be further modified depending on the success of the sale of assets, the sources say.

The management of UniCredit is reviewing the strategic development plan, announced in March 2014, seeking to increase profits and compensate for the deterioration of the margin lending operations in connection with record low interest rates.

The updated strategic development plan UniCredit, according to sources, suggests that the Bank’s operations will focus on the Italian market, as well as the types of businesses that require less capital and generate fee income.

The number of Bank branches will be reduced, while the performance of the service centers corporate customers will increase, the sources noted.

UniCredit last year’s plan included an increase of the Bank’s profit to 6.6 billion euros by 2018, in particular, by reducing expenditures and selling certain assets. Target profit, according to a source, can be reduced, and the Bank may announce cut costs by 1 billion euros.

The Bank’s shares on Friday fell by 0.9%.