Commerzbank Reaches Agreement On 5,200 Job Cuts

Axe In Wood

As part of the strategic agenda announced in November 2012, the Commerzbank will cut a total of 5,200 full-time equivalents by 2016.

The bank said that at the end of 2012 and at the beginning of this year, Commerzbank had already decided on a reduction of 800 full-time equivalents, primarily in the Non-Core Assets segment.

A further reduction of 500 full-time equivalents is planned abroad and in the Group’s subsidiaries in Germany. The remaining job cuts of 3,900 full-time equivalents have now been approved by the Works Council of Commerzbank AG Germany. Of these cuts around 1,800 full-time equivalents will be affected in the Private Clients Segment, as announced in February of this year. On the other hand, the Group will invest in an increase of as many as 1,000 full-time equivalents so as to implement the Bank’s strategic agenda.

As of 31 March 2013 Commerzbank employed around 45,000 full-time equivalents.

As part of its strategic agenda the Bank plans to invest more than $2.68bn in the coming four years while maintaining a stable cost base. In order to achieve this, the Bank needs to increase its earnings power while further reducing its expenses through adjustments to the material and personnel cost bases.

The agreement reached Wednesday with the Works Council of Commerzbank AG Germany foresees an extension of the exclusion of enforced redundancies to 2016, originally offered until the end of 2014, if the agreed reduction targets are met. 'It is our objective to implement these job cuts without enforced redundancies', said Ulrich Sieber, responsible for Human Resources on the Board of Managing Directors of Commerzbank. 'Together with the employees’ representatives we have found a way to achieve considerable cost reductions, on the one hand, while securing our competitiveness and earnings power through investment, on the other'.

Alternative positions will be brokered for as many affected employees as possible through an internal job board and so-called M.O.V.E. centres. These support centres will provide employees with an overview of vacant positions throughout the Bank and are competence centres for the regional external job market.

image: © Torpe

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