FRANKFURT, Oct 1 (Reuters) - LBBW, Germany's largest landesbank, is set to cut around 2,500 jobs as part of a restructuring plan -- three times as many as it first envisaged in July -- a source close to the bank told Reuters.
The bank, which employs around 13,600 staff now, is being forced to shrink as a condition for European Union approval of a 5 billion euro ($7.3 billion) capital injection Landesbank Baden-Wuerttemberg (LBBW) got from its owners after posting a 2.1 billion loss in 2008.
New chief executive Hans-Joerg Vetter is set to present his restructuring plan to the supervisory board on Thursday.
Sources close to the situation have told Reuters that LBBW expected a 1.8 billion euro loss this year as it grapples with bad loans and soured real estate projects.
The bank, owned by the state of Baden-Wuerttemberg and local savings banks, has said it did not need fresh capital. (Reporting by Alexander Huebner; Writing by Michael Shields; Editing by Dan Lalor) ($1 = 0.6863 euro)