Dresdner Bank is axing 2480 jobs, half of which will be cut from its back office operations, in a shake-up by parent company Allianz that is expected to generate savings of EUR600 million at the bank by 2008.
In a statement, the bank says the 2480 jobs are to be cut by 2008 - half of them from its transaction and loan processing operations and half from central and regional management.
Dresdner expects the jobs cuts, which will cost EUR400 million, to yield savings of EUR250 million and boost income by EUR350 million.
The move will affect 1980 jobs at Dresdner's German operations and 500 at the bank's domestic and international subsidiaries.
As part of the revamp, Dresdner is creating three main divisions - private and corporate clients, investment banking and a business services unit which will house the bank's transaction processing, administration and and internal IT services.
The shake up will also affect staff at Allianz's City-based investment banking arm Dresdner Kleinwort Wasserstein (DrKW), although details on how many jobs could go at the unit were not given. However recent reports suggest that DrKW could reduce the number of back-office staff by almost a third, while boosting the number of front-office employees.
In a statement, Dresdner says: "The unsatisfactory starting position at DrKW – with a cost-income ratio of more than 90% in 2005 – will be improved."
As part of the shake-up DrKW is to drop Wasserstein from its name. The unit is also being restructured and will consist of a global banking division and a capital markets arm.