Commerzbank intends to eliminate 1,700 jobs this year, informed sources from that German bank, which in the medium term plans to cut about 10,000 jobs and close hundreds of subsidiaries. The elimination of these positions within the current fiscal year will be done by the voluntary termination formula, said bank said in a statement.
The elimination of these positions within the current fiscal year will be done by the voluntary termination formula.
The goal is to eliminate some 10,000 positions from its workforce by 2024, currently made up of 40,000 employees. “The voluntary redundancy program is an important step towards the necessary restructuring of the workforce,” said Personnel Manager Sabine Schmittroth.
The bank’s purpose is to allocate funds of up to 430 million euros to this task, including liquidations and other costs derived from the restructuring, concentrated in its subsidiaries in Germany and also abroad. Commerzbank estimates the total cost of this restructuring at a total of 1.8 billion euros, until 2024.
At the beginning of February, the German bank already announced the implementation of a new strategic plan until 2024 to advance the bank’s digitization and reduce costs. This plan included the aforementioned 10,000 jobs record, that is, 21% of its almost 48,000 workers, as well as the closure of 340 of the 790 offices that currently make up the entity’s network. He also announced that it will leave 15 international locations.