Daily Management Review

Germany's central bank to cut about 5% of jobs


German Central Bank intends to reduce employment by up to 5% over the next few years as part of a modernization effort, Deutsche Welle reports.

The decrease will be made by declining to fill many positions that will become vacant over the course of the next four years when some employees retire.

The plan to modernize the Bundesbank was developed by consultants from the US-based Boston Consulting Group (BCG), hired by the current head of the central bank Joachim Nagel.

The "Wandel" project, which translates to "change" in German, intends to turn the Central Bank into a forward-thinking, adaptable digital organization that must act fast in the face of complex, ever-changing circumstances, according to the Bundesbank.

The increasing losses of the Central Bank, which are caused, among other things, by the increase in the base interest rate, may require the expenditure of more than €20 billion in reserves and capital in the upcoming years, the newspaper notes.

source: dw.de