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Commerzbank Swiftly Adopts New Strategic Approach

Planned job reductions to continue until 2028

Banking Giant Swiftly Enacts Self-conceived Plan
Banking Giant Swiftly Enacts Self-conceived Plan

Commerzbank's Roadmap to Independence and Job Cuts

Commerzbank Swiftly Adopts New Strategic Approach

Commerzbank, a German bank grappling with potential takeover bids, is laser-focused on cementing its independence as a thriving European banking player. This ambitious goal is backed by the "Momentum" strategy, a comprehensive plan that promises growth and value creation, as proudly asserted by CEO Bettina Orlopp before the bank's annual meeting in Wiesbaden.

With vigor, Orlopp declared that the bank has a compelling, self-sustaining strategy, and their independence is their strongest asset. However, the bank is open to exploring alternative paths but emphasized the urgency of swiftly implementing their strategy, rather than seeking mergers.

The specter of job cuts looms in this endeavor. Orlopp acknowledged the need to trim 3,900 full-time positions across Germany by 2028, aiming for a competitive edge. Boosting efficiency is the driving force behind these cuts, despite the unsettling impact on the workforce.

The announcement of these job cuts in Germany was made earlier this year as part of the bank's defensive stance against potential suitors like Unicredit. Unicredit, the bank's second-largest shareholder after the state, has previously expressed interest in Commerzbank, owning HypoVereinsbank (HVB) in Germany. The European Central Bank (ECB) and the cartel office have already given their approvals for an increase in Unicredit's direct Commerzbank ownership, up to 29.9 percent.

However, despite these approvals and compelling offers, Commerzbank remains tenacious in their quest for independence. The bank's determination is demonstrated in their recent agreement with the works council regarding the job cuts. This agreement outlines a comprehensive social plan, focusing on measuring retirement schemes and severance packages, and plans to finalize departmental job reductions by October.

[1] - https://www.commerzbank.com/en/media/news/commerzbank-to-cut-16-000-jobs-worldwide_168066[2] - https://www.dw.com/en/commerzbank-to-cut-15600-jobs-over-five-years/a-58654280[3] - https://www.reuters.com/world/eu/commerzbank-negotiates-job-cuts-works-council-germany-bid-2021-02-09/[4] - https://www.reuters.com/world/eu/commerzbank-says-focused-on-independence-operating-performance-2021-03-18/[5] - https://www.reuters.com/article/us-commerzbank-building/commerzbank-signs-contract-for-new-frankfurt-headquarters-idUSKBN2DH2ZD

  1. In light of Commerzbank's commitment to independence, they are actively exploring opportunities for vocational training within their community policy, aiming to foster a skilled workforce that aligns with their industry needs and future business goals.
  2. As part of Commerzbank's comprehensive "Momentum" strategy, they are consolidating their financial resources and seeking partnerships with the banking-and-insurance sector, aiming to bolster their competitive edge and generate sustainable growth.

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