Commerzbank to cut 5,200 jobs

COMMERZBANK yesterday said 12 per cent of full time staff will be laid off, as the major German lender restructures itself up to 2016.

The bank currently employs 45,000 people, and has already made reductions in employment since a bailout by the German government during the financial crisis.

The retail arm of the bank will absorb 1,800 of the job losses.

The group will partially offset these redundancies by enlarging its Mittelstandbank, which lends to medium-sized businesses, employing an extra 1,000 people.

A statement insisted that the bank envisaged that they could make the requisite number of redundancies by voluntary agreements with employees.

Commerzbank had initially suggested a reduction of between 4,000 and 6,000 jobs in January.