German public-sector bank Landesbank Baden-Wuerttemberg plans to cut some 2,500 jobs by 2013 as it embarks on a cost-cutting drive, an official said Thursday, according to AP. Stuttgart Mayor Wolfgang Schuster said after a meeting of LBBW's owners that layoffs couldn't be ruled out under the program, which aims for annual savings of ¤700 million (about $1 billion). Some 13,600 people currently work for LBBW. The bank is owned by the state of Baden-Wuerttemberg, the city of Stuttgart and municipally backed local banks _ an ownership structure similar to that of other German public-sector wholesale banks, or Landesbanken. Several of the Landesbanken have suffered hefty write-downs as a result of the subprime lending and credit crisis and the subsequent market volatility. Landesbank Baden-Wuerttemberg has had a smoother ride than peers such as Bavaria's BayernLB and northern Germany's HSH Nordbank, but still had a net loss of nearly ¤2.1 billion last year. It blamed that on dramatic market volatility and an increase in loan-loss provisions as the economic crisis spread to companies. In August, it reported a first-half profit of ¤215 million, but said a tight economic situation might lead to «further strains at year-end» and made no full-year forecast.