Commerzbank's Layoffs Plan Through 2028
Banking institution Commerzbank is swiftly executing its unique plan.
Commerzbank is eyeing a significant reduction of about 3,900 jobs by 2028, with the brunt of these losses occurring in Germany. Here's an insider look at the reasons behind these layoffs and the methods Commerzbank plans to use:
Motivation Behind the Layoffs
- Financial Goals and Growth Objectives: The job cuts are a strategic move under Commerzbank's "Momentum" strategy, aiming to push the bank towards loftier financial goals by streamlining operations and boosting efficiency.
- Pressure from Unicredit: Unicredit, an Italian banking giant, has been attempting to pull Commerzbank into its financial group. Commerzbank's "Momentum" strategy is a countermeasure to this pressure, designed to secure its independence.
Implementation Details
- Collaboration with Works Council: Commerzbank has reached an understanding with its works council regarding the layoffs, ensuring a socially-friendly implementation process. This understanding emphasizes focusing on partial retirement schemes, along with severance packages for departing employees in Germany.
- Reduction Techniques: The primary strategies for scaling back employee numbers will be partial retirement programs, as well as severance agreements with cash settlements.
- Global Workforce Balance: Despite the job losses in Germany, Commerzbank intends to maintain its total number of full-time employees at 36,700 by hiring outside Germany. This keeps the bank's global workforce stable.
- Divisional Arrangements and Timeline: The details for each division's arrangement will be finalized by October 2025. The layoffs will be completed by 2028.
Office Optimization
Commerzbank is also streamlining its real estate footprint by consolidating resources in the central banking district. The bank aims to relocate employees from satellite locations into its headquarters and the soon-to-be-built Central Business Tower.
Community policy within Commerzbank may advocate for vocational training programs to skill and retain employees amidst the job cuts, contributing to the bank's efforts to maintain a stable workforce of 36,700 by 2028. By the end of this period, the bank's presence in various sectors, such as industrial finance and business, may witness significant shifts as a result of these layoffs and office optimizations.
