|
DKW to slash 1,500 jobs
|
 |
July 27, 2001: 10:07 a.m. ET
German investment bank plans biggest sector cuts in current slowdown
|
LONDON (CNN) - German investment bank Dresdner Kleinwort Wasserstein has said it will cut around 1,500 jobs in a restructuing by its new owner, insurer Allianz.
The move is said to be the most dramatic job loss program in investment banking during the current downturn.
The cuts are expected to fall most heavily in the bank's operations outside Europe, especially in Asia, according to media reports, in a restructuring of its investment banking and corporate clients business aimed at enabling the operation to focus on Europe in future.
Dresdner (FDRB) said on Friday it envisaged potential annual cost savings of around  500 million ($438.6 million) as a result of the move.
The bank's shares were up 2.2 percent in Frankfurt after the news.
When Allianz (ALZ) announced its takeover of Dresdner Bank in March, it said its investment banking arm would be made into a separate legal entity with the goal of listing it on the stock exchange, but that proposal has now been dropped.
Bankers at DKW are said to be furious because many were encouraged to stay during the turmoil of the past two years by the expectations of owning shares after a listing, the Financial Times said.
"Dresdner Bank is an integral part of the new group," said Allianz Chairman Henning Schulte-Noelle. "In future it will continue to position itself successfully with the new division." 
|
|
|
|
|
 |
|
