Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

People look at stock market indexes on a monitor outside a bank in Milan in this file photo. Unicredit, Italy’s biggest bank, is cutting 1,000 jobs at its German unit, sources say.

Antonio Calanni/AP

Italian bank Unicredit plans to cut about 1,000 jobs at its German unit by the end of next year in a bid to slash costs at its ailing retail bank, two people familiar with the matter told Reuters on Wednesday.

The figure for job cuts has yet to be finalized and formal negotiations with labour representatives will start shortly, a third source said.

Unicredit, Italy's biggest bank by assets, declined to comment.

Story continues below advertisement

It was unclear whether these cuts are part of a broader cost-cutting sweep already announced by the bank. Unicredit has said in the past it will shed 800 branches and more than 6,000 jobs as part of a group-wide streamlining program.

Like other European banks, Unicredit is grappling with low interest rates, rising costs from implementing tougher bank rules, and clients who have become risk averse during the euro zone crisis.

Unicredit's German unit, which employs roughly 19,000 staff, will close almost 50 branches and thin out staff at the remaining ones in response to changing customer habits.

Retail clients are increasingly switching to Internet banking services and are relying less on face-to-face services, the sources said.

Another 400 jobs will be shed as part of a change to the corporate structure which will split the bank's German operations into two units – one for private clients and one for corporate customers.

This year, the bank will cut 600 jobs, all three sources said, confirming an earlier report in daily Frankfurter Allgemeine Zeitung.

Last year, workers at UniCredit and other Italian banks went on strike to protest against job losses and pay cuts.

Story continues below advertisement

Other German banks are also negotiating deeper cost cuts. Germany's second biggest lender Commerzbank is set to announce job cutback plans this week, and media reports have said that about 6,500 jobs could go.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies