Final Stages: Commerzbank's Job Cuts Negotiations
Discussion on potential workforce reductions at Commerzbank remains ongoing within the works council. - Discussions on job production at Commerzbank's works council are expected to be finalized.
Commerzbank is on the home stretch of negotiations concerning job cuts, as confirmed by the works council. Sascha Uebel, chairman of the group and central works council, shared with the German Press Agency that they're in the later stages of discussing the framework social plan and agreement on interest reconciliation.
Uebel also verified a "Handelsblatt" report, stating a central works council meeting scheduled for May 14 in Wiesbaden, one day prior to Commerzbank's Annual General Meeting. The purpose of the meeting is to endorse the framework social plan and potentially, the framework interest reconciliation as well1.
Commerzbank’s Restructuring Effort
Boarding on its “Momentum” strategy, Commerzbank aims to trim around 3,900 full-time positions by the year-end in 2027 with about 3,300 of those job reductions taking place in Germany1. Despite these cuts, the bank expects the workforce to stay relatively consistent at around 36,700 full-time employees globally as new jobs will be created in Poland and lower-wage Asian locations1.
The bank's goal is to shed costly roles and increase profits, thereby securing its autonomy amidst competition from entities like Unicredit, which gained a substantial stake in Germany's second-largest private bank following the federal government's partial exit in September1.
Potential Merger and Resistance
While Unicredit's CEO, Andrea Orcel, has been vocal about the advantages of merging the two institutions for months, the possibility of the takeover remains uncertain due to strong resistance within Germany1. The federal government still holds approximately 12% of Commerzbank's shares.
Annual General Meeting Protests
The central works council and Verdi trade union have planned a series of protests during Commerzbank's Annual General Meeting on May 15 in Wiesbaden. Employees are encouraged to participate in a "moving works meeting" at 8:00 a.m. before the shareholders' meeting, voicing their opposition to a potential takeover2. They aim to demonstrate the significance of Commerzbank's independence to both on-site shareholders and fellow employees.
- Despite the job cuts negotiations in the later stages, Commerzbank, a EC country based bank, aims to maintain a consistent workforce globally, with new vocational training opportunities in Poland and lower-wage Asian locations.
- As part of its restructuring effort, Commerzbank plans to reduce around 3,900 full-time positions by the end of 2027, transitioning some roles into vocational training programs for independence and growth in the industry and finance sectors.
- Unicredit's CEO, Andrea Orcel, has pushed for a potential merger between the two banks, but strong resistance within Germany and Commerzbank's focus on securing its autonomy amidst competition has left the possibility of the takeover uncertain.
- The central works council and Verdi trade union, in their efforts to preserve Commerzbank's independence, have organized a series of protests during the bank's Annual General Meeting in Wiesbaden, encouraging employees to voice their opposition to a potential takeover through a "moving works meeting."
