Commerzbank Unveils Strategic Overhaul with Job Cuts and Ambitious Targets
FRANKFURT, Germany -- Commerzbank announced on Thursday significant changes to its strategy, including plans to cut 3,900 jobs and set more aggressive financial goals. These measures are aimed at fending off potential advances from UniCredit for a merger between the German and Italian lenders.
Key elements of the strategy review include:
* Job Reductions: 3,900 layoffs, primarily in Germany, to take place by 2028.
* Hiring Offset: The job cuts will be partially offset by hiring outside Germany, resulting in a stable headcount of 36,700 full-time employees.
* Restructuring Costs: €700 million in 2025 to cover transitional expenses.
* Profit Target: Increased net profit target to €3.8 billion in 2027 from the previous goal of €3.6 billion.
* Cost-to-Income Ratio: Aim for a reduced cost-to-income ratio of 53% in 2027, down from the prior target of 54%.
* Acquisitions and Partnerships: Exploration of targeted acquisitions and strategic partnerships to enhance growth.
* Payout Ratio: Distribution of 100% of net income as dividends from 2026 to 2028.
With these initiatives, Commerzbank aims to enhance its competitiveness and create a more resilient financial position while addressing the challenges posed by UniCredit's merger aspirations.