Commerzbank unit Eurohypo to cut around 300 jobs -sources

FRANKFURT, April 30 (Reuters) - Commerzbank's (CBKG.DE) real estate financing unit Eurohypo is set to cut around 300 jobs in Germany and overseas, sources familiar with the plans told Reuters.

A formal announcement is expected in the next fortnight and is tied to unveiling broader restructuring plans for the unit.

The job cuts at Eurohypo would go beyond those already announced at Commerzbank, which plans to cut 9,000 jobs in the wake of the takeover of Dresdner Bank.

Cause for further cuts is the deteriorating performance of Eurohypo. In 2008 Eurohypo made a pretax loss of 1.4 billion euros ($1.86 billion) weighed down by rising risk provisions for defaults on loans tied to real estate financing.

Eurohypo's Chief Executive Frank Poerschke said in a statement: "The management board at the end of 2008 started a strategic project to position the bank for the future challenges."

"Under review is in which markets we offer what kind of real estate financing and what consequences this has for our employees. Currently different scenarios are being evaluated. As soon as decisions have been taken, we will communicate them."

As part of a strategic overhaul, Eurohypo is set to drastically cut back its overseas business, and concentrate on continental Europe, Britain, and the United States. Locations in Asia or south America are likely at risk, the sources said. (Reporting by Patricia Uhlig, writing by Edward Taylor)