Commerzbank set to cut 6,000 jobs in its latest savings drive

Tim Wallace
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GERMAN lender Commerzbank joined the flood of banks cutting jobs yesterday, telling staff that thousands will get the chop in its latest round of cost cutting.

Up to 6,000 of its 56,000 staff will go from the end of 2013.

Around three-quarters of its total headcount work in Germany, but London is one of its major centres outside the bank’s home country and staff in the City are not expected to be spared from the redundancies.

The bank, which has twice been bailed out by the German taxpayer, is going through a major shake up, pulling out of areas like shipping finance and commercial property lending as it cuts back on capital-intensive business lines.

And it is investing €2bn (£1.7bn) over the next three years to refocus on areas like the private customer business and its small and medium-sized enterprise (SME) unit.

Commerzbank merged with Dresdner Bank in 2008 and under that agreement cannot cut any jobs until the end of this year.

But negotiations will begin next month on the number of staff who will lose their jobs, and the terms of the action.