Commerzbank facing massive job cuts: thousands of jobs at risk!

Commerzbank facing massive job cuts: thousands of jobs at risk!

Commerzbank is facing a significant upheaval: Despite an impressive net profit of 20 percent in 2024 and a record year, the Frankfurt financial institution is planning to cut several thousand jobs. According to internal sources, this could affect around 3,000 to 4,000 of the total 42,000 employees, as well as both krone.at as well as kleinezeitung.at report. This drastic measure is being taken by the bank to reduce its costs and to maintain its independence in the tense situation regarding takeover bids from Italy's UniCredit.

Background and consequences of job cuts

Commerzbank's supervisory board will discuss the details of the strategy at a meeting on Wednesday, which will be officially presented on Thursday. According to insiders, management under new CEO Bettina Orlopp is planning a cautious process to avoid unrest among employees. These adjustments are part of a long-term plan to demonstrate the bank's "significant value potential" while shares have risen around 50 percent since UniCredit became public.

UniCredit has increased its interest in Commerzbank and now controls around 28 percent of the shares. This has aroused not only economic but also political interest, as Commerzbank, which is 12 percent state-owned, fears a possible hostile takeover. The works council expresses concern about massive job cuts and warns of the risks associated with a takeover. Commerzbank itself has made it clear that it is against such a takeover, although some major investors and business representatives may well consider discussions.