Commerzbank To Lower Staff Count By 3,900

Commerzbank, one of Germany’s largest banks, said on Thursday that it will cut down 3,900 jobs within the next three years. The bank will remove many jobs in Germany but will add workers in other countries. In the end, there will still be 36,700 full-time jobs, the bank said.

For months, Commerzbank’s leader, Bettina Orlopp, has been working on new plans for the bank. She said these changes will show how much the bank can grow and improve.

UniCredit’s Plan To Merge With Commerzbank Causes Debate

According to reports, UniCredit, a bank from Italy, is trying to team up with Commerzbank. Customers in Germany have shared their thoughts about the merger. Some want Commerzbank to stay on its own, but others think joining UniCredit could help.

Commerzbank hopes that by announcing job cuts and stronger financial goals, it can prove to investors that it is strong enough to stand alone. The bank is partly owned by the German government and has described UniCredit’s actions as unfriendly.

The bank said it will have to spend 700 million euros ($730 million) this year to apply some changes. It also raised its profit target for next two years from 3.6 billion euros to 3.8 billion euros. The bank’s new goal is to spend less money to earn more, aiming for a cost-to-income ratio of 53% instead of 54%.

Investors reacted positively, and Commerzbank’s stock price went up by 1% after the news. In recent months, the stock has climbed nearly 50% since UniCredit first showed interest in a merger. The bank also reported a 20% rise in yearly profits, showing that its recovery plan has been working. Orlopp said the plan is to lift Commerzbank to the next level.

Last year, UniCredit’s leader, Andrea Orcel, surprised many in Germany when his Italian bank bought a large share of Commerzbank. He is trying to bring the two banks together and thinks it is a smart idea. But he said it could take a long time, and he might not go through with it.

Commerzbank Aims For A Gradual Job Cut Process

Commerzbank’s job cuts will happen gradually, the bank said. Many will leave through natural job changes or early retirement. This way, workers will not feel too worried, and the bank can avoid harsher cuts if UniCredit takes over.

Commerzbank also said it is looking to buy smaller companies and form partnerships instead of agreeing to a huge merger. Other European banks, such as ING in the Netherlands, are also exploring similar deals.

Germany’s leaders strongly oppose a UniCredit takeover. Boris Rhein, a top politician from Hesse, where Commerzbank is based, shared his opinion. Speaking to business leaders, he told UniCredit to stop. Rhein said nobody wants what the firm is doing, so he urges the group to withdraw.

While some investors and business leaders support discussing a merger, most of Germany’s government and Commerzbank’s employees want the bank to stay independent.