Commerzbank Announces Extensive Job Cuts and Ambitious Financial Goals Amidst UniCredit Acquisition Saga
Job Cuts and Restructuring
Commerzbank, Germany’s second-largest private customer bank, has embarked on a major restructuring plan that will result in the elimination of approximately 3,900 full-time positions by the end of 2027. The majority of these job losses, totaling 3,300, will occur within Germany.
The cuts will primarily affect the bank’s headquarters and other locations in Frankfurt am Main. Specifically, staff positions and back-office functions will be targeted. Commerzbank’s CEO, Bettina Orlopp, has pledged to further reduce process complexity and enhance operational efficiency.
To mitigate the social impact of the job cuts, Commerzbank plans to utilize the effects of demographic change and natural employee turnover. The bank has reached agreements with employee representatives to establish a partial retirement program that will take effect later this year.
Despite the job reductions, Commerzbank’s overall workforce is expected to remain relatively constant at approximately 36,700 full-time employees worldwide. This is because new positions are expected to be created in other areas of the group, such as the Polish mBank and Asian branches.
Financial Ambitions
Alongside the staffing cuts, Commerzbank has set ambitious financial targets. The bank aims to significantly increase its profits in the coming years, with a projected rise in net income from approximately €2.7 billion in 2022 to €4.2 billion by 2028.
However, the bank anticipates a decline in profits to €2.4 billion in the current year due to the initial costs associated with the job cuts. These are estimated to be around €700 million for 2023.
Commerzbank’s board of directors has also announced substantial dividend payments to shareholders. For 2025, the bank intends to distribute more than 100% of its net income, excluding interest payments on hybrid bonds.
UniCredit Acquisition Saga
The staffing and financial restructuring initiatives are taking place against the backdrop of a potential takeover bid from Italian banking giant UniCredit. UniCredit has been vying for control of Commerzbank ever since the German government partially exited its shareholding in the fall of 2022.
UniCredit currently holds over 28% of Commerzbank’s shares, including approximately 9.5% directly through ownership of shares and around 18.6% through financial instruments. UniCredit’s CEO, Andrea Orcel, has expressed interest in fully acquiring Commerzbank but has yet to make a formal public offer.
Commerzbank’s management team and employee representatives have opposed UniCredit’s advances, characterizing them as "hostile." German politicians have also expressed resistance, as the government still holds a 12% stake in the bank after rescuing it with taxpayer funds during the financial crisis of 2008-2009.
