The FT reports that up to 800 jobs will go in the shake up that follows Dresdner Bank's decision to more closely integrate the bank's traditional lending operations with its investment banking activities. Up to 400 of the jobs are likely to be lost in Frankfurt.
Dresdner lost almost $1bn in the third quarter and is in the middle of a severe cost reduction exercise. In total, around 11,000 jobs will go in the group by the end of next year as the business seeks to return to profitability some time in 2003.
The latest move comes shortly after the swift departure of Dresdner Kleinwort Wasserstein's chief executive Leonhard Fischer, who left the firm in October and was known to be opposed to closer integration between commercial and investment banking.