Unicredit cuts jobs and eyes east

http://news.bbc.co.uk/go/rss/-/1/hi/business/7474854.stm

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Unicredit, Europe's fourth-largest bank, plans to cut 9,000 jobs in Italy, Germany and Austria.

But the bank, Italy's second-biggest, will create 11,500 jobs in eastern Europe when it opens 1,300 new outlets.

Like many banks, Unicredit has been hit by the impact of the credit crunch and those with interests outside of western Europe and the US have fared better.

The bank foresees stronger economic growth in central and eastern Europe than western Europe.

It said it expected central European economies to grow by 4.5% a year on average to 2010, compared with 1.7% in the eurozone.

It said its plan was "built on the fundamental belief that... banks with a strong franchise and a well-diversified revenue base are best protected from uncertainties".

Alessandro Profumo, the bank's chief executive, has previously said it wants to expand in eastern and central Europe, where it says it has the largest international banking network.

The bank, which earns about 50% of its revenues outside of Italy, has a total workforce of about 180,000.