Thursday 1 April 2021 4:06 pm

Commerzbank to cut 1,700 jobs following deep losses

Commerzbank will offer voluntary redundancy to some 1,700 full-time staff in Germany, in a bid to cut costs at the bank.

Entitled employees will be offered termination agreements from July 2021, and employees who make use of the voluntary programme will leave the bank by the end of the year.

Read more: Commerzbank embarks on revamp as loss deepens to record level

The decision comes after Germany’s second largest bank reported a record $3.3bn fourth-quarter loss last month as it continued to absorb the fallout of the Covid-19 pandemic.

At the time, Commerzbank said it would swiftly introduce plans to cut 10,000 jobs and close hundreds of branches in a bid to strive for profit in 2021.

One in three jobs will be lost in Germany and the bank will add 2,500 roles outside the country to cut costs, mainly in Eastern Europe.

The bank hopes the revamp will revive its fortunes as it reshuffles its strategy.

Read more: Commerzbank poaches Deutsche Bank executive as new boss

“The voluntary programme is an important step in the necessary headcount reduction,” said Sabine Schmittroth, member of the board responsible for group human resources. “We are quickly providing instruments that will already reduce the cost base in the coming year.”

In the first quarter of 2021, the bank will book restructuring charges amounting to a total of around €470m. The majority resulting from the voluntary programme, and further restructuring expenses are mostly booked for the restructuring abroad and for real estate.

The bank will spend some €1.8bn on restructuring, including the provisions for the voluntary programme. Around €1.4bn has already been booked.