Italy's UniCredit has reached a deal with unions to cut 2,400 jobs, the sector's main union FABI said, in the first stage of workforce reductions foreseen in the bank's 2013-18 restructuring plan.

The country's biggest bank by assets said it aimed to cut around 8,500 jobs by 2018 - nearly 6 per cent of its workforce - including more than 5,700 in Italy.

As part of the deal with unions, UniCredit also agreed to hire 800 young people and put 670 existing apprentices on permanent contracts, while talks on the remaining job cuts will continue next year, FABI added.

The bank confirmed a deal with unions, but did not give further details.-Reuters