The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Financial Service Activities, Except Insurance And Pension Funding 64 - Financial service activities, except insurance and pension funding
1,000 jobs Number of planned job losses
Announcement Date
20 December 2008
Employment effect (start)
Foreseen end date
Description
On 20 December 2008, the mortgage bank Hypo Real Estate (HRE) announced a cost cutting measure that will eliminate around 1,000 jobs. Nowadays, HRE employs about 1,800 employees. HRE stated that it wants to reposition itself as a leading specialist for real estate and public-sector finance in Germany and Europe. The bank estimates that the current measure will lower annual costs by 200 million euros by 2011 and another annual 250 million euros by 2013. However, the restructuring measure will incur one-time costs of 400 million euros. HRE stated that the job cuts were also necessary to fulfil the requirements to receive further financial support from the national government. First news of HRE’s financial crisis had reached the public in September 2008. To date, no announcement has been made as to how the job cuts will be managed.
Sources
22 December 2008: Frankfurter Allgemeine Zeitung
Citation
Eurofound (2008), Hypo Real Estate, Internal restructuring in Germany, factsheet number 67724, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/67724.
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