Commerzbank to Cut 3,900 Jobs by 2028
Aims to Boost Net Profit to 4.2 Billion Euros through Restructuring
Move Seen as Response to UniCredit's Takeover Attempt
Germany's Commerzbank has initiated restructuring as it faces the risk of being merged into an Italian bank.
On the 13th (local time), Commerzbank announced that it would cut 3,900 full-time jobs by 2028, focusing on its headquarters and German branches. Some overseas offices and its Polish subsidiary mBank will increase staff to maintain a global workforce of 36,700 employees.
Through this restructuring, the bank expects to increase net profit from 2.7 billion euros (4.1 trillion KRW) last year to 4.2 billion euros (6.3 trillion KRW) by 2028 by enhancing efficiency through IT infrastructure and utilizing overseas bases. Approximately 700 million euros (1.1 trillion KRW) will be invested in workforce reductions, including early retirements.
Germany's ARD broadcaster analyzed that this workforce reduction is a strategy by Commerzbank to prove to investors that it can survive independently amid UniCredit of Italy's acquisition attempts.
UniCredit last year purchased a large number of Commerzbank shares released by the German government and secured a total stake of 28% including derivative contracts.
The Commerzbank labor union and the German government have opposed this, calling it a "hostile takeover attempt." Commerzbank is the second-largest commercial bank, mainly dealing with small and medium-sized enterprises.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
