Bloomberg News

Spain’s Ahorro Said to Cut Third of Workforce After 2012 Losses

February 12, 2013

Ahorro Corp., the Spanish investment group owned by lenders including Bankia SA, plans to cut about a third of its workforce after reporting a full-year loss, according to a person with knowledge of the matter.

Ahorro, which has 460 employees and has offices in Spain and the U.S., could carry out the job cuts by April and present a new business plan in May, said the person, who asked not to be identified because the deliberations are private.

The Madrid-based company will report a 2012 net loss of about 160 million euros ($215 million), compared with profit of 4.5 million euros the previous year, the person said. The sale of covered bonds and asset-backed securities resulted in net capital losses of about 300 million euros, the person said.

Ahorro manages funds for private and institutional investors, while offering equity and fixed-income brokerage services, according to the company’s website. Expansion newspaper reported Ahorro’s restructuring plans and 2012 losses earlier today.

Silvia Sagarna, a spokeswoman for Ahorro in Madrid, declined to comment when contacted by Bloomberg News.

To contact the reporter on this story: Manuel Baigorri in Madrid at mbaigorri@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net


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