Bloomberg News

Swedbank Cuts 600 Jobs in Plan to Trim Costs in Sweden, Baltics

December 13, 2011

Dec. 13 (Bloomberg) -- Swedbank AB, Sweden’s largest mortgage lender, is cutting 600 jobs in the Nordic country and the Baltic region in an effort to reduce costs.

“This is part of the restructuring that we announced in the third-quarter report, to have lower costs in 2012 than this year,” Johannes Rudbeck, head of investor relations at Swedbank, said in a phone interview. “There will be about 300 jobs made redundant in Sweden and 300 in the Baltics with a cost of about 330 million kronor ($48 million) in the fourth quarter.”

Swedbank said the number of full-time employees fell to 16,813 during the third quarter. European financial companies have cut 127,073 jobs so far this year as banks reduce costs to meet higher capital demands, according to Bloomberg data.

The Stockholm-based lender reported a third-quarter net income of 3.48 billion kronor from 2.59 billion kronor in the year-earlier period.

--Editors: Tasneem Brogger, Christian Wienberg.

To contact the reporter on this story: Adam Ewing in Stockholm at aewing5@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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