Comprehensive layoff move…
Germany’s second largest bank, Commerzbank, opposes the takeover attempt by Italian UniCredit “independence”announced that it would toughen its strategy and cut employment by 3 thousand people.
3 THOUSAND STAFF ARE BEING DISMISSED
The bank announced that it will cut additional employment for 3 thousand people in order to increase operational efficiency and has significantly increased its profitability targets for 2030.
Commerzbank Chief Executive Officer (CEO) Bettina Orlopp stated at the meeting held in Frankfurt that the bank’s 2030 strategy yielded stronger results than expected. “Our strategy is working and we have much higher potential than originally planned.”he said
INCOME TARGET HAS BEEN CERTAINED
Orlopp announced the bank’s 2030 revenue target as 16.8 billion euros and net profit expectation as 5.9 billion euros.
Commerzbank announced that it will make strategic employment cuts to prevent UniCredit’s acquisition attempt.
The bank plans to invest approximately 600 million euros by 2030 in the use of artificial intelligence to increase operational efficiency.
While a 10 percent productivity increase in the workforce is aimed thanks to the automation provided by artificial intelligence, an agreement was reached with the business council to cut 3 thousand positions from the 38 thousand staff.
The bank allocated a budget of 450 million euros for this process.
HAVE PROVIDED THE BEST PERFORMANCE SINCE 2011
UniCredit’s takeover plans “uncertain”oath “implementation risks are high”Commerzbank management emphasized that organic growth is safer for shareholders.
The bank reiterated that it is open to negotiations, but only on the condition that an attractive premium is offered to shareholders and the bank’s SME-focused business model is preserved.
Commerzbank achieved a net profit of 913 million euros in the first quarter of the year, its best quarterly performance since 2011.
Operating profit increased by 11 percent on an annual basis and reached a record level of 1.36 billion euros. Analysts expected operating profit to be around 1.32 billion euros.
ONE OF THE LARGEST TAKEOVER ACTIVITIES IN EUROPEAN FINANCE HISTORY
The moves initiated by the Italian banking group UniCredit to acquire Commerzbank turned into one of the largest takeover activities in the history of European finance.
The process, which started in September 2024 and moved to a new dimension with an official offer of 35 billion euros as of March 2026, is closely followed by economic administrations and markets.
The process started with the German Federal Government selling some of the Commerzbank shares it had held since the 2008 financial crisis.
Contrary to market expectations, UniCredit purchased a large portion of the shares (4.5 percent) on its own, increasing its total share to 9 percent.
While the German government plans to spread the shares to a wide group of investors, it wants all of them to go to a rival bank. “incorrect process management”He reacted harshly to this move, describing it as.
UniCredit, which submitted its official takeover offer of 35 billion euros in March 2026, is waiting for the final approval from the European Central Bank (ECB) to complete the process.
“IF UNICREDIT COMES, 15 THOUSAND PEOPLE MAY BE UNEMPLOYED”
On the other hand, German unions increased the pressure on the government, warning that 15 thousand people in Germany may lose their jobs under the control of UniCredit.
Commerzbank employee representatives and unions supported the bank’s management’s strategy to remain independent against UniCredit’s takeover attempt, rejecting a possible merger. “employment massacre”He warned that it would cause
Commerzbank General Business Council President Sascha Uebel emphasized that the bank’s own planned cut of 3 thousand people is much less painful compared to the losses that would be incurred in the event of a takeover.
Uebel stated that if UniCredit goes into administration, more than 10 thousand employees, including subsidiaries and international centers, could be affected.
