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Spain's Bankia to cut 6000 jobs amid recession concerns for Q4

 
 
 
 
 
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Bankia’s headquarters in Madrid

Spain’s nationalized Bankia says it plans to cut 6,000 jobs by laying off about 28 percent of its staff over the next three years.

The announcement on Wednesday follows a preliminary report on Madrid’s overall economy by the Spanish Central Bank suggesting that the country’s job-killing recession is expected to persist into the final quarter of 2012.

Bankia’s decision to make the massive layoffs came after the European Commission (EC) approved a restructuring plan for the bank.

Bankia also said it intends to shut 39 percent of its branches by 2015.

A spokesperson for the EC said the restructuring “will allow them to become viable in the long-term without continued state support.”

Already bailed out, the EC said Spain’s fourth largest bank will receive 36 billion euros from the restructuring plan.

Madrid nationalized the bank this May after pumping 19 billion euros to save it from near collapse.

Spain’s jobless rate stands above 25 percent the highest in the eurozone.

Spain’s Central Bank says production and investment are in rapid decline.

The financial crisis in Spain has resulted in a rise in home evictions and the number of people living on food stamps.

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