German Bank BayernLB Unveils 5,600 Job Cuts, Mainly In Asia

The troubled German regional bank BayernLB said on Monday that it would shed more than a quarter of its workforce by 2013, with Asian operations slated to bear the brunt of a rigourous downsizing, Agence France-Presse reported today. A statement said BayernLB would eliminate 5,600 posts of a total 19,200 in a bid to save 670 million euros ($850 million) over the next five years. BayernLB “will be smaller and engaged in fewer activities, but it will emerge stronger, closer to its customers and less susceptible to incalculable risk," chairman Michael Kemmer was quoted as saying. The state-owned bank will refocus its activities in Bavaria and selected regions of Europe while closing all Asian operations, including branches in Hong Kong, Shanghai, Beijing, Tokyo and Mumbai. On Friday, the Bavarian-based bank said it would request 10 billion euros in fresh capital from public sources. BayernLB planned to ask for about seven billion euros from the state of Bavaria and three billion from the federal government's stabilization fund, or SoFFin. Read more.