Commerzbank will reduce its headcount by 2300 and close 200 branches as part of strategic plan that will also see EUR750 million pumped into digitalisation and IT infrastructure.
The German lender, which earlier this year saw a planned merger with Deutsche Bank fall through, says it will cut 4300 full-time positions, although this will be partly offset by 2000 new jobs. Meanwhile, branch numbers will fall from about 1000 to 800.
The 'Commerzbank 5.0' strategy will cost around EUR1.6 billion, with technology investments accounting for nearly half of this.
The bank says it wants to expand its mobile capabilities and is considering merging the Comdirect digital bank, which it majority owns, into its operations. Commerzbank is planning to offer a 25% premium to owners of the 18% of Comdirect it does not currently hold.
Meanwhile, to help fund its plan, the German bank is preparing to offload its majority stake in Polish lender mBank.