Spain’s Ahorro Said to Cut Third of Workforce After 2012 LossesManuel Baigorri
Ahorro Corp., the Spanish investment group owned by lenders including Bankia SA, plans to cut about a third of its workforce after reporting a full-year loss, according to a person with knowledge of the matter.
Ahorro, which has 460 employees and has offices in Spain and the U.S., could carry out the job cuts by April and present a new business plan in May, said the person, who asked not to be identified because the deliberations are private.
The Madrid-based company will report a 2012 net loss of about 160 million euros ($215 million), compared with profit of 4.5 million euros the previous year, the person said. The sale of covered bonds and asset-backed securities resulted in net capital losses of about 300 million euros, the person said.
Ahorro manages funds for private and institutional investors, while offering equity and fixed-income brokerage services, according to the company’s website. Expansion newspaper reported Ahorro’s restructuring plans and 2012 losses earlier today.
Silvia Sagarna, a spokeswoman for Ahorro in Madrid, declined to comment when contacted by Bloomberg News.