Commerzbank announced on Thursday that it will close 3,900 full-time positions by 2028 to improve its financial stability.
Nevertheless, the bank added that the recruitment will take place in other “-selected areas, meaning that the global number of full-time employees will remain stable at 36,700”.
The layoffs will mainly affect staff in ’, Germany, while hiring will take place in cheaper locations.
Commerzbank’'s announcement was announced in a fiscal update on Thursday after the bank posted its full-year earnings two weeks ago.
Germany’'s second-largest bank, 2024’te %It achieved a record net profit of €2.68 billion with an increase of 20.
Revenues, partly in net commission income %7 increase to 3.64 billion Euro’ as a result of the growth %6 increased to 11.11 billion Euro’. Net interest income also remained strong.
The layoff warnings came at a time when Commerzbank’ was trying to fend off the hostile purchase offer from Italian lender UniCredit’.
UniCredit, partly through derivatives of the German bank ’lik acquired its stake, but the management of Commerzbank’ is against a full takeover.
Both German banking officials and politicians fear the merger could lead to layoffs and prevent loans to small and medium-sized businesses.
At the end of last year, Chancellor Olaf Scholz criticized “'s efforts to aggressively buy shares in companies without any cooperation, without any consultation, without any feedback.
UniCredit CEO ’ Andrea Orcel said on Tuesday that Germany will launch an official takeover bid from the bank following ’'s appointment of a new government following elections at the end of the month.
If Commerzbank can strengthen business opportunities before that date, it will be easier for the lender to resist the takeover.
The firm said on Thursday it expects net profits of €4.2 billion in 2028’ and %He announced that he aimed to obtain a return on material equity of 15’.
Expense-to-income ratio last year approximately the same year compared to ’ %He said he was expected to go up to 50’ye.
Looking at the results of 2025, Commerzbank predicts that profits will fall to 2.4 billion Euro’ due to restructuring costs of 700 million Euros.
The bank is still looking for ways to increase dividends and shareholder payments.
Based on its 2024 earnings, the lender is offering a dividend of 0.65 euros per share from last year's 0.35 euros’.
Commerzbank, for the period 2025-2028 after deducting restructuring costs and Annex Tier 1 (EC 1) bond vouchers %It plans a payout rate of over 100’.
In a separate statement on Thursday, it announced the launch of a strategic partnership with the German credit institution Visa.
Commerzbank customers will be given Visa debit and credit cards as a priority, and the lender argued that this would make it even easier for “bank's customers to shop abroad and online.
