Bloomberg News

German Banks See Job Cuts Amid Pessimistic Outlook, Survey Shows

February 27, 2012

Almost 25 percent of German banks plan to cut jobs in the next sixth months as they remain more pessimistic about the financial industry’s outlook than many of their European peers, Ernst & Young reported, citing a survey.

Only 12 percent of German lenders said they expect an increase in employment and 65 percent expect no change in headcount, the consulting firm said in an e-mailed statement today. The majority of German managers don’t expect an improvement in financial markets, citing the sovereign debt crisis and slowing economic growth.

German lenders said the default of a European country would have a “significant” negative impact on the sector and lead to a pull-back in lending and every third bank would require state aid, according to the survey. Ernst & Young questioned more than 500 banks in Europe, including 50 in Germany.

To contact the editor responsible for this story: Aaron Kirchfeld at akirchfeld@bloomberg.net


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