Spain's SCH to slash 11,000 jobs

MADRID, Spain (Reuters) -- Leading Spanish bank Santander Central Hispano on Tuesday said it would slash 11,000 jobs or 10 percent of its workforce this year, a day after reporting disappointing first-quarter results.

In good times and bad the bank has been reducing staff ever since the 1999 takeover by Santander of Banco Central Hispano, and like previous cuts focuses on Latin America, where 8,000 of the jobs will be shed, with the other 3,000 in Spain.

"Around 11,000 jobs at group level are expected to be cut, most of which were already expected as part of restructuring in Latin America,'' an SCH spokesman said, adding that the bank would promote early retirement and seek as many mutual severance agreements as possible.

The reductions were in line with the cost-cutting plan to improve the company's efficiency.

Last year, SCH laid off more than 14,500 employees, representing a 5.4 percent cut in Spain and a 16.3 percent cut in Latin America.

The bank had reported a workforce of 40,000 in Spain and 61,500 in Latin America before the latest job cuts were announced.

Latin America accounted for 66 percent of SCH's group net profit in the first quarter, even with the economic crisis in Argentina.

The bank said on Monday said group profits edged up just 0.3 percent compared to an expected rise of six percent in a Reuters survey of banking analysts.

Its Argentine unit contributed nothing in the quarter as operating profit there was set aside entirely for provisions there as an economic crisis continues to undermine confidence.

Shares in the bank were up 1.22 percent by 1423 GMT to 10.22 euros as the DJ Euro Stoxx banking index eased 0.16 percent.