MILAN: Italy's biggest bank, UniCredit, announced plans Tuesday to slash 14,000 jobs and raise billions of euros in fresh capital as the country gets to grips with political instability and a banking crisis.
The bank, one of the worst performers in European bank stress tests, confirmed it would need to seek 13 billion euros ($13.8 bn) in fresh capital from investors despite political complications in Italy and the nation's third-largest bank scrambling to avoid a government-led rescue.
UniCredit also said it would shelve around 14,000 jobs by the end of 2019 as part of a cost-saving drive.
The bank estimated this would save it 1.1 billion euros in staff costs. It said it planned to slash other costs by 600 million euros, resulting in an annual saving of 1.7 billion euros.
UniCredit's announcements came at a time when investor confidence in Italy could be on the mend after the formation of a new cabinet under Paolo Gentiloni, having been shaken by the collapse of former prime minister Matteo Renzi's government.
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