Hypo Real Estate to cut 1,000 jobs

Hypo Real Estate says Saturday that it will reduce the number of employees from nearly 1,800 to about 1,000 over the next three years. Two-thirds of those jobs will be outside Germany.

It says another 200 jobs will go by 2013. The company says it expects to cut annual costs by some euro200 million ($282 million) by 2011, and by euro250 million by 2013.

Hypo Real Estate ran into trouble in mid-September after its Dublin-based unit Depfa Bank PLC failed to attract short-term funding amid the widening credit crunch. It has received a rescue package backed by the German government.