German bank HSH Nordbank plans to lay off staff of 600 in the next two years as the company seeks to reduce costs further in the challenging market conditions. In a statement on Tuesday to announce the group's H1 2008 results, HSH said it will shed about 400 jobs in Germany and another 200 jobs abroad by the end of 2010 in an attempt to cut costs to EUR 900 mln in 2010, from EUR 984 mln in 2007.
German bank HSH Nordbank plans to lay off staff of 600 in the next two years as the company seeks to reduce costs further in the challenging market conditions. In a statement on Tuesday to announce the group's H1 2008 results, HSH said it will shed about 400 jobs in Germany and another 200 jobs abroad by the end of 2010 in an attempt to cut costs to EUR 900 mln in 2010, from EUR 984 mln in 2007.
'We expect the crisis on the financial markets to be protracted,' said Hans Berger, CEO of HSH Nordbank. The company also unveiled a broad bundle of measures aimed at increasing the bank's financial clout, profitability and efficiency. 'Our program will improve our competitive position and make the Bank weatherproof,' Berger added.
As a result, HSH Nordbank will dispose of some operations and non-strategic equity holdings, in addition to reducing its credit investment portfolio. This will affect, in particular, the leasing business and leveraged buy-out operations outside Germany, the real estate business in New York and the Bank's corporate client activities in Asia, the bank said.
HSH Nordbank added that the group's profit came to EUR 129 mln for the first six months of the year from EUR 727 mln in the full 2007 year.
