Commerzbank Aims to Quickly Rebuild as a Strong European Bank: Job Cuts Ahead
Commerzbank to Swiftly Adopt Self-Devised Strategy
In the face of potential takeover attempts from competitors like Unicredit, Commerzbank's CEO, Bettina Orlopp, emphasizes the bank's strategic goal to establish itself as a solid player among Europe's successful banks.
Orlopp reveals the bank's "Momentum" plan, aimed at self-reliance and sustainable growth. According to Orlopp, the capital market appreciates this independent ambition, and understands Commerzbank's potential for value creation.
However, achieving this independence comes with tough decisions. Commerzbank plans to cut around 3,900 full-time positions by 2028, predominantly in Germany. This move is necessary to ensure a competitive cost base. While this might seem daunting, the bank assures that measures will be taken to minimize the impact.
The job cuts will primarily be facilitated through partial and early retirement schemes, as well as potential severance payments for employees leaving the group in Germany. This process will strive to be socially acceptable as much as possible, and will mainly affect Commerzbank AG in Germany, with the remaining positions being cut from subsidiaries, partly abroad.
Despite these cuts, Commerzbank plans to maintain its global workforce at approximately 36,700 full-time positions, by hiring outside Germany to balance the numbers. Detailed plans for cuts within individual divisions are expected to be finalized by October 2025.
The European Central Bank (ECB) has already approved Commerzbank's increased participation by Unicredit, up to 29.9 percent, with the green light also given by the cartel office. However, Commerzbank remains resistant to a full takeover.
[3]: Unpublished Enrichment Data (Details on the social plan agreement and reconciliation with employee representatives)
Community policy will play a crucial role in managing the social implications of Commerzbank's job cuts, ensuring a fair and sensitive approach is taken.
Finance, along with vocational training, will be essential in supporting impacted employees, offering resources for career transitions and financial assistance during this period of change.
