Commerzbank explores thousands of job cuts as it seeks to fend off UniCredit, FT reports
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Germany’s Commerzbank is under pressure to cut costs and boost returns after unwanted approach from UniCredit.
PHOTO: AFP
Bengaluru - Germany’s Commerzbank is exploring cutting thousands of jobs as it seeks to fend off an unwanted approach from Italy’s UniCredit, the Financial Times reported on Jan 18, citing people familiar with the matter.
The plans that are not yet finalised were expected to be unveiled to the workers’ council over the coming weeks, the report added. One person familiar with the discussions told the Financial Times that the figure was likely to be “in the low thousands”, the FT said.
According to the newspaper, the bulk of job cuts could come from moving jobs relating to digitisation and other IT functions to other European countries outside Germany.
Commerzbank did not immediately respond to a Reuters request for comment outside regular business hours.
Commerzbank‘s supervisory board chairwoman Jens Weidmann said there is little chance for an amicable merger with UniCredit after the Italian bank’s surprise purchase of a large stake in the German lender, newspaper Handelsblatt reported earlier last week.
UniCredit now controls around 28 per cent of the shares in Commerzbank, in which the lender holds about 9.5 per cent directly, and it has also secured access to a total of 18.5 per cent through financial instruments.
Analysts anticipate that a tie-up would result in billions of euros of cost savings, as the enlarged bank strips out duplicate functions, the FT reported.
Commerzbank unions have warned that a takeover by UniCredit could threaten up to 15,000 jobs. This could be a politically sensitive issue with Germany’s federal elections being held in February, the FT said. REUTERS
