Bank to cut 8,500 jobs

Firm plans to trim about 6% of the workforce.

UniCredit SpA posted a record $20.8bn fourth-quarter loss as it set aside money for bad loans and wrote down goodwill from acquisitions. It plans to cut 8,500 jobs.

Bloomberg reports that provisions for doubtful loans soared to $12.9bn in the quarter, more than double the year-ago level, while impairments, including those on the goodwill of units in Italy, central and eastern Europe and Austria, amounted to more than $12.47bn, the lender said.

CEO Federico Ghizzoni is cleaning up the balance sheet as the European Central Bank reviews lenders before taking over banking supervision in November. The 58-year-old CEO plans to trim about 6% of the workforce to improve profit as part of a five-year project announced. The writedowns are a legacy of his predecessor, Alessandro Profumo, who spent about $60bn on European takeovers from 2005 to 2008. Investors pushed the shares to the highest in more than two years, betting the cleanup will work.

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UniCredit Posts Record Loss, Plans 8,500 job cuts

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