Germany’s Commerzbank could slash thousands of jobs #NewsGerman

Germany’s Commerzbank is considering slashing thousands of jobs as the bank battles to fend off a takeover bid from Italian banking giant UniCredit, according to multiple media reports.

A Commerzbank spokeswoman declined to comment on the reports, but referred to the bank’s upcoming capital markets day event for investors on Thursday, when Commerzbank executives are expected to present a detailed strategy for the coming years and discuss the bank’s 2024 financial results.

A few weeks ago, German media reported that Commerzbank could cut jobs in the low thousands in the struggle with UniCredit. Most recently, unconfirmed media reports spoke of up to 4,000 jobs.

Commerzbank boss Bettina Orlopp is trying to prevent a takeover by Unicredit, and more ambitious medium-term profit targets should help.

So far, Commerzbank’s board has planned to increase profits to well over €3 billion ($3.1 billion) by 2027 and to increase returns. The new targets are intended to boost Commerzbank share prices and make efforts by UniCredit to grow its stake in the German bank more difficult.

Orlopp moved to the top of the bank in the fall after Unicredit made a surprise move to acquire 9% of Commerzbank stock. In the meantime, the Italians have gained access to a total of around 28% of Commerzbank shares via financial instruments.

However, official regulatory permission to increase the direct shareholding is still pending.

In preliminary financial results presented in January, Commerzbank reported earning just under €2.7 billion in 2024, an increase of about a fifth over the year before.

The bank plans to increase the dividend from €0.35 to €0.65 per share.