Commerzbank to cut 3,900 jobs, mainly in Germany, as it fends off UniCredit

FRANKFURT - German lender Commerzbank said on Feb 13 it plans to cut about 3,900 jobs – around 10 per cent of its workforce – as it seeks to fight off advances from Italian bank UniCredit.

The cuts, to be implemented by 2028, come as the bank makes “efficiency gains” from digitalisation and increased use of overseas sites, Commerzbank said.

The reductions would mainly affect operations in Germany, the bank said, adding they would be pushed through by such steps as offering early retirement.

At the same time, more jobs will be added overseas, in locations such as Poland.

The announcement comes after Commerzbank reported in January that its profits jumped 20 per cent in 2024 to hit a record high, and pledged to return more cash to shareholders.

The bank also boosted its financial targets on Feb 13 and is aiming to increase its net profit to €4.2 billion (S$5.9 billion) by 2028, up from about €2.7 billion in 2024.

By boosting its targets and cutting staff, Commerzbank hopes to become more attractive to investors and bolster its defences against UniCredit.

The UniCredit-Commerzbank saga began in September when Italy’s second-biggest bank surprised markets by revealing it had built up a stake in its rival, triggering talk that chief executive 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 per cent.

But Commerzbank has vowed to fight any takeover, and the approach has sparked anger in Germany, with politicians, led by Chancellor Olaf Scholz, opposed to it. AFP