Germany’s Commerzbank to cut thousands of jobs #NewsGerman

Germany’s Commerzbank will cut thousands of jobs as the bank battles to fend off a takeover bid from Italian banking giant UniCredit.

About 3,900 full-time positions will be cut by the end of 2027, the company announced on Thursday. Some 3,300 roles will go in Germany, Commerzbank said.

However, Commerzbank’s global workforce would remain largely steady at 36,700 full-time employees, as new jobs would be created in other areas of the business, such as the Polish mBank and locations in Asia.

According to the bank, the job cuts in Germany will mainly affect the headquarters and other locations in Frankfurt, particularly staff functions and back-office roles.

Germany’s second-largest retail bank has around 20,000 full-time employees in its home market currently.

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 October 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.