German bank Dresdner has given details of what it calls its "turnaround programme", including the 3,000 job cuts announced in August.

The redundancies are part of the group's aim to return to profit in 2003 after heavy losses last year.

Over one-third of the cuts will come from the group's investment banking division, Dresdner Kleinwort Wasserstein (DrKW).

The head of the investment unit, Leonhard Fischer, resigned this week over differences on how to run the division.

Detailed cuts

Mr Fischer's resignation came hours before the Dresdner chairman, Bernd Fahrholz, announced details of the "Turnaround 2003" strategy.

Mr Fahrholz said: "Our main aim is to be operating profitably by next year and to record an operating profit".

Dresdner, owned by the German insurance group Allianz, announced in August that it would cut 3,000 jobs worldwide from its retail and investment divisions.

Its plan to stem the decline in revenues appears optimistic

Merrill Lynch

Almost half of these were in the DrKW investment arm and 270 UK staff were fired last week, following a significant drop in merger and advisory business.

Cost cutting

Dresdner is the third largest bank in Germany, but reported a loss of 1.2bn euros (�760m; $1.2bn) in the second quarter of this year.

The company said: "Dresdner Bank started curbing costs two years ago... However, this has not been enough to return the bank to profitability."

It now wants to create cost-savings of 700m euros by the end of 2003, and reduce its administrative costs from 8.7bn euros to 6.5bn euros.

The group is also streamlining its corporate structure, which it said would create "greater transparency and responsibility for profits by the end of 2003".

Cautious reception

Analysts praised the bank's strategy but saw the cuts as a further indication that times are tough for the investment market.

"Allianz's new cost cutting measures for Dresdner are commendably aggressive," said Merrill Lynch analyst Brian Shea.

"However, its plan to stem the decline in revenues appears optimistic."