Munich  - UniCredit, the Italian banking group, is planning workforce cuts in both Germany and Italy that would lead to thousands of staff losing their jobs, the German business newspaper Handelsblatt reported Wednesday on its website.

It said the prediction came from "a person privy to the situation" but a UniCredit spokesman had declined comment. Most of Unicredit's activities in Germany are conducted by its subsidiary HypoVereinsbank (HVB).

Handelsblatt said the cuts in western Europe would match major new hirings in eastern Europe, where UniCredit is the leading bank and banking business is expanding fast. (dpa)