Russia’s biggest lender to axe 67,000 jobs

Russia’s largest retail bank Sberbank is to reduce headcount by 25% - or 67,000 jobs by 2014.

However, around 27,000 of the jobs will be axed by the end of 2009, said the bank.

The bank, which is state-controlled, has been hit by the economic downturn and the cuts are part of a modernisation plan.

Denis Bugrov, a vice president and member of the bank’s management board, comments: “Over five years, we plan a 20-25 percent cut in personnel. We confirm that this task is realistic.”

“In 2010, we see the possibility of moving from anti-crisis management to planned growth and development. We expect a very significant improvement in financial results for 2010 compared with 2009,” added Mr Bugrov.

In related news, yesterday the World Bank forecast Russia’s economy would contract 8.7% in 2009 and predicted only a very weak recovery in 2010.

In other banking jobs news this week, Lloyds Banking Group announced it will axe 5,000 jobs by the end of 2010, bringing its total number of job losses this year to 12,500.

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