EMCC European Monitoring Centre on Change

Aareal Bank

Company/Organisation:
Aareal Bank

Geographic Location

Country: Germany

Company

Sector: Financial services
Financial and insurance activities
64 - Financial service activities, except insurance and pension funding
Number Employed: 2850

Employment Effects

Announcement Date: 14-08-2006
Planned Job Reductions min: 400
Planned Job Reductions max: 400
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-01-2006
Foreseen End Date: 31-12-2008

Additional Information

On 14 August 2006, the Aareal Bank AG, a real estate financing institute, announced to cut an additional 150 jobs within the next two years. Affected by the planned job reductions are its housing business and accounts department. At the moment, its housing business affiliates and accounts department employ 1600 persons. On 29 November 2005, Aareal Bank had already announced to reduce its workforce by a 250 employees within its holding company and reconfirmed this figure by now. The holding company employs 1250 persons so far. The Aareal Bank has run into the red in 2004. The job reductions are part of an overall restructuring scheme that aims to maximise the establishment's profit.