Russian bank to cut 67,000 jobs

Sberbank provided backing for a bid for General Motors Europe

Sberbank, Russia's largest lender, has announced plans to cut as many as 67,000 jobs, or a quarter of its workforce, within the next five years.

Around 27,000 of these jobs will go by the end of this year, the bank added.

The state-controlled bank has been hit by the downturn and is implementing a widespread modernisation plan.

Sberbank has been in the news recently as the partner of car parts maker Magna, which tried unsuccessfully to buy General Motor's European arm.

"Over five years, we plan a 20% to 25% cut in personnel. We confirm that this task is realistic," said Denis Bugrov, a member of the bank's management board.

"In 2010, we see the possibility of moving from anti-crisis management to planned growth and development. We expect a very significant improvement in financial results for 2010 compared with 2009," he added.