Germany's Commerzbank plans job cuts in response to UniCredit merger pressure
German lender Commerzbank announced Thursday that it plans to reduce its workforce by approximately 3,900 jobs, representing around 10 percent of its total employees, as it faces mounting pressure from Italian bank UniCredit regarding a potential merger.
The bank also hiked its financial targets, as executives aim to boost its attractiveness for shareholders and bolster defences against its Italian suitor amid speculation that a takeover bid is on the horizon, News.Az reports, citing foreign media.
"We are accelerating our profitable growth and consistently driving forward our transformation," said Commerzbank chief executive Bettina Orlopp. "This makes Commerzbank stronger and better."
The job cuts, to be implemented by 2028, come after Germany's second-biggest bank booked a record profit in 2024.
But the bank said they could be justified due to "efficiency gains" from digitalisation and increased use of overseas sites, and they would be implemented through such steps as offering early retirement.
The cuts will mainly take place in Germany but, at the same time, more jobs will be added overseas in locations such as Poland, the bank said.
The planned restructuring will entail costs of around 700 million euros ($730 million) before taxes in 2025, the bank said.
Commerzbank had already embarked on a cost-cutting drive in recent years, reducing staff and closing branches, which had helped it to grow its profits.
The UniCredit-Commerzbank saga began in September when Italy's second-biggest bank revealed it had built up a stake in its rival, triggering talk that CEO Andrea Orcel wanted to push for an ambitious pan-European banking merger.
It has since boosted its holding in the German bank to around 28 percent.
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