Commerzbank is set to eliminate 3,900 positions over the upcoming two years as part of its strategy to reduce costs and enhance profitability amid a takeover attempt by Italy’s UniCredit.
The majority of these layoffs will affect support roles within Germany, as the bank aims to leverage international locations, as well as nearshore and offshore subsidiaries, more extensively. Commerzbank plans to achieve its workforce reduction primarily through natural attrition, demographic changes, and an early partial retirement program. Despite these cuts, the overall employee count is projected to remain stable at approximately 36,700, as the bank seeks to attract skilled talent from abroad.
The bank anticipates restructuring costs of around €700 million, excluding tax implications, in 2025, which will influence its expected profit for that year, estimated to decrease to €2.4 billion. However, Commerzbank has increased its net profit forecast for 2027 to €3.8 billion, up from the earlier target of €3.6 billion.
On the technology side, Commerzbank plans to modernize its payment operations and enhance its omnichannel strategy. The bank reports that over 90% of customer interactions are digital, with more than half of product sales occurring online. Additionally, plans are in place to revamp branch services later this year to provide more personalized advisory options.
To stimulate organic growth, Commerzbank will combine its internal efforts with strategic acquisitions. The bank is also focused on cultivating partnerships aimed at developing innovative products, distribution channels, and IT services.
Recently, Commerzbank signed an agreement with Visa to become its preferred card payment partner and previously established collaborations with Google Cloud and Microsoft to incorporate artificial intelligence solutions to boost productivity.