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RPT-Dexia to cut 700-800 jobs this year - paper

(Repeats to additional Reuters clients)

BRUSSELS, Jan 29 (Reuters) - Belgian-French financial services group Dexia DEXI.BRDEXI.PA is set to announce 700-800 job cuts for this year and a sharp reduction of bonuses, Belgian daily De Standaard said on Thursday.

Sources close to the group, the world’s largest municipal lender with around 35,000 employees at the end of 2007, told Reuters on Wednesday that it would unveil details of planned restructuring after the stock market closes on Friday.

Dexia said in November it planned to save 15 percent of costs in the next three years, or some 500 million euros ($662 million), with 300 million euros of savings already identified.

De Standaard said half the planned job cuts this year would be in Belgium, though few would be forced redundancies. No decision had yet been taken about possible job cuts in the following two years.

Dexia executives would give up any bonuses this year. The group announced the replacement of the head of its asset management arm on Wednesday.

Bonuses for non-executives would be cut by between 30 and 60 percent, De Standaard said.

Dexia declined to comment on the report.

The group said in November that it would refocus on its core businesses in public, retail and commercial banking in Belgium, Luxembourg, Turkey and Slovakia.

This would lead to the end of “exotic branches” such as those in Japan and Mexico, De Standaard said.

Dexia received 6.4 billion euros from France, Belgium, Luxembourg and key shareholders in September when the financial crisis deepened and later won state guarantees for its borrowing.

Its restructuring has led it to sell its troubled U.S. bond insurance subsidiary Financial Security Assurance to U.S. peer Assured Guarantee AGO.N. (Writing by Philip Blenkinsop, editing by Dale Hudson)

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