Germany’s second largest lender commerzbankIt announced a significant reduction in its workforce by up to 3,000 as it stepped up efforts to strengthen its financial performance and maintain its independence in the face of increasing pressure from its Italian rival. The move forms part of a broader overhaul designed to deliver higher profitability while embracing emerging economies technologiesincluding a significant commitment artificial intelligence.
The job reductions represent the latest phase in a series of efficiency moves. At the beginning of this decade, in frankfurtThe headquartered bank has already eliminated around 10,000 roles (roughly a third of its domestic workforce) and followed that up with plans to cut nearly 4,000 jobs last year.
Commerzbank currently employs around 40,000 staff worldwide, with around 25,000 based in Germany.
Management emphasized that some new hires are expected in areas focused on operational improvements and that the latest reductions will be handled responsibly. In parallel, the bank plans to allocate 600 million Euros to artificial intelligence initiatives between 2026 and 2030.
Executives predict this technology push will deliver annual cost savings of around €500 million by the end of the decade, potentially influencing future hiring decisions. artificial intelligence abilities develop.
These steps coincide with upward revisions to the bank’s medium-term financial targets. commerzbank it now forecasts revenues of €15 billion in 2028, up from its previous forecast of €14.2 billion.
It also aims to make a net profit of €4.6 billion this year, down from the previous target of €4.2 billion. Additional improvements include a better cost-to-income ratio (targeted at 46 percent in 2028 and 41 percent in 2030) and net return on equity approaching 17 percent in 2028.
The lender increased its expected net result for the current year to €3.4 billion. The changes include €450 million in projected restructuring expenses. labor adjustments.
The timing of the announcement underlines Commerzbank’s determination to chart its own path.
of italy UniCreditThe bank, which owns a stake of around 30 percent and has become the bank’s largest shareholder, officially launched a hostile takeover bid worth around 35-37 billion euros earlier this week.
This offer is below the current market valuations He faced harsh criticism from Commerzbank’s leadership.
Chief Executive Officer Bettina Orlopp He described UniCredit’s approach as vague, highlighting key differences in strategic vision. German bank’s achievements. UniCredit’s own restructuring plan called for much deeper cuts (potentially 7,000 positions across the combined organization).
The proposed merger has sparked intense debate in Germany, where Commerzbank plays a vital role financing the country’s influential small and medium-sized businesses.
chancellor Friedrich Merz He publicly rejected the offer, calling it aggressive and damaging to trust. Berlin The company retains a roughly 12 percent ownership stake from the 2008 financial crisis bailout, and some officials have floated the idea of increasing that stake to protect national interests.
Union representatives voiced similar concerns, warning that foreign control could jeopardize thousands more jobs. Commerzbank’s first quarter results provided a positive basis for a change in strategy.
Net profit increased by 9.5 percent to 913 million euros. analyst It is rising above expectations thanks to disciplined cost management and strong commission income in unstable markets. Demonstrating stronger independent prospects through technology investment and leaner operations bank It hopes to convince shareholders that independence remains the superior path forward in a cross-border era banking consolidation
