Commerzbank announced on Thursday that it plans to cut 3,900 full-time positions by 2028 as part of an effort to reinforce its financial stability amid growing pressure from Italy’s UniCredit, which is pursuing a takeover.
The German bank clarified that while the cuts will take place, hiring will continue in other “selected areas,” keeping its total workforce at a steady 36,700 employees globally. The majority of the layoffs will affect staff in Germany, with the new hires being made in regions with lower labor costs.
This decision came alongside a financial update released by Commerzbank, following its recent full-year earnings report. In 2024, Germany’s second-largest bank posted a record net profit of €2.68bn, reflecting a 20% annual increase. Revenues also grew by 6%, reaching €11.11bn, partly driven by a 7% rise in net commission income, which reached €3.64bn. Net interest income also remained robust.
The job cuts come as Commerzbank seeks to stave off a hostile takeover bid from Italian lender UniCredit. UniCredit has accumulated a 28% stake in Commerzbank through derivatives, although Commerzbank’s management remains firmly opposed to a full takeover.
Both German banking authorities and politicians are concerned that such a merger could result in job losses and reduce lending to small and medium-sized businesses. Chancellor Olaf Scholz criticized the approach last year, stating, “to aggressively acquire stakes in companies without any cooperation, without any consultation, without any feedback.” UniCredit’s CEO Andrea Orcel confirmed on Tuesday that the bank would launch a formal takeover bid once a new German government is formed after elections at the end of the month. If Commerzbank can strengthen its business outlook in the meantime, it may be better positioned to resist the takeover.
The firm outlined its financial targets on Thursday, aiming for a net profit of €4.2bn by 2028, along with a return on tangible equity of 15%. It also expects to improve its cost-income ratio to around 50% by 2028, down from 59% last year.
However, Commerzbank predicts a decline in profits for 2025, estimating €2.4bn due to restructuring costs amounting to €700 million.
