FRANKFURT (Reuters) - Allianz will cut nearly 7,500 jobs as part of a far-reaching restructuring plan designed to boost earnings, Germany's largest insurance group said on Thursday.

Allianz said the measures would result in some 5,000 job cuts at its German insurance operations, confirming what sources familiar with the situation had told Reuters late on Wednesday.

Allianz said a further 2,480 jobs would be cut at its Dresdner Bank banking unit, most of them in Germany and about half of them in back-office functions.

"On the insurance side it is in line with what I had expected, but on the banking side it is more than I thought," said LRP analyst Robert Mazzuoli. "The market should look at how fast the group can put this restructuring in force."

The Munich-based group, which now employs about 31,000 full-time staff in its core German insurance operations, said the job cuts would lead to 500 million to 600 million euros ($632-$758 million) in cost savings at that business from 2008.

Most of the cuts -- which represent about 16 percent of staff at the restructured businesses -- would come from reducing Allianz's administrative locations in Germany to 10 from 21.

But the measures would also cause restructuring costs of around 500 million euros, Allianz added, the bulk of which would be booked in this year's accounts.

Allianz CEO Michael Diekmann has said there was no way to avoid restructuring, but the company has previously pledged there will be no compulsory redundancies until the end of 2007.

The bank said it was "further integrating its business units" and establishing separate divisions for private and corporate clients, investment banking, and business services.

The job cuts at Dresdner would cause up to 400 million euros in restructuring costs but also contribute to some 600 million in synergies by 2008, the bank added.

Dresdner had acquired the Wasserstein name when it bought Wall Street dealmaker Bruce Wasserstein's corporate finance firm Wasserstein Perella in September 2000 for about $1.37 billion.

Since the appointment of Stefan Jentzsch as its head in November, he and his team have been reviewing plans to combine the corporate and investment banking businesses to tap into Dresdner's German client base.

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