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Commerzbank says to slash 4,300 jobs in new restructuring round

AFP  |  Frankfurt 

Germany's second-largest lender Commerzbank said Friday it plans to cut the equivalent of 4,300 full-time posts, one-tenth of its workforce, and shutter 200 branches in a fresh bout of restructuring.

On top of the job cuts -- which bosses say will be partly offset by 2,000 new hires in other areas -- Commerzbank also aims to sell its majority stake in Poland's mBank to bring in some of the cash needed for its plans.

And it will buy out the remaining third-party shareholders in subsidiary Comdirect, of which it already owns 82 per cent.

The scheme has yet to be signed off by the bank's supervisory board, the lender added.

"With its new strategic programme, Commerzbank is enhancing the long-term sustainability of its business," the Frankfurt-based firm said.

If approved by the supervisory board, its latest moves would cost around 1.6 billion euros (USD 1.8 billion).

Shares in Commerzbank were up 1.3 per cent on the day, trading at 5.77 euros by around 3:30 pm in Frankfurt (1330 GMT).

The stock has struggled to convince investors this year, falling to lows around 4.72 euros after reporting falling profits in the second quarter but gaining ground since then.

Like other major European banks, Commerzbank has gone through successive rounds of restructuring as it battles headwinds like sector-wide overcapacity and low interest rates, announcing in 2016 it would shed 9,600 jobs in four years.

In recent months, rival Deutsche Bank has announced 18,000 job cuts, HSBC 4,000, and France's Societe Generale 1,600.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, September 20 2019. 19:35 IST
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