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Commerzbank is exploring the possibility of cutting thousands of jobs as it seeks to fend off unwanted moves by Italy’s UniCredit, according to people familiar with the matter.
The plans, which have not yet been formalised, are expected to be presented to the Labor council in the coming weeks, two of the people said. One person familiar with the discussions told the Financial Times the figure was likely “in the low thousands”.
The German lender’s new chief executive, Bettina Orlopp, is due to unveil an updated strategy on February 13 to show the bank can improve profitability and shareholder payouts on its own.
UniCredit, led by CEO Andre Orcel, built a position in Commerzbank which has the potential to make it the bank’s largest shareholder if it secures regulatory approval.
Orcel he has made no secret of his ambitions for Commerzbank, including a full takeover of the German rival.
Investors in Commerzbank have generally backed the deal – with the exception of the German government, which still holds a 12 percent stake after selling a 4.5 percent stake to UniCredit last year.
Analysts predict that the merger would result in billions of euros in cost savings, as the expanded bank eliminates duplicate functions.
A key point of resistance for both unions and the government was the possibility for UniCredit to wield the ax in Germany, where it already has a German subsidiary, HypoVereinsbank (HVB).
Commerzbank unions have warned that a takeover by UniCredit could put up to 15,000 jobs at risk – an issue that has taken on an added dimension of political sensitivity ahead of Germany’s federal election next month.
The possibility of Commerzbank pushing for cuts even without a takeover by the Italian bank would mark another chapter in its extended restructuring.
Commerzbank has already cut thousands of jobs and closed about half of its 800 branches since 2021, when former CEO Manfred Knof launched a turnaround effort.
The changes helped increase operating profit and tripled the bank’s share price in the last three years, and in 2023 it launched the first share buyback program in its history.
But the build-up of UniCredit’s stake has put additional pressure on the German bank to prove it can deliver better profitability and shareholder value as an independent company than part of the Italian bank’s empire.
Germany’s second-largest listed bank has struggled with costs that are higher than rivals, including HVB. Orlopp has already raised Commerzbank’s performance targets since UniCredit’s approach in September.
Even some insiders expressed doubt that Commerzbank could hope to present a stand-alone case that would offer greater value to shareholders than a merger, given the potential synergies involved in the deal.
One person familiar with the matter suggested that Orlopp now plans to accelerate further restructuring that was previously considered an option for the future.
Another person familiar with the discussions indicated that the job cuts could be driven by digitalisation, particularly the adoption of artificial intelligence, with IT functions potentially being “brought closer” to other European countries outside of Germany.
Commerzbank said the updated strategy, due to be presented alongside full-year results next month, was still under development, and “we cannot pre-empt upcoming discussions in the management and supervisory boards”.
