Commerzbank to axe one in three German jobs

Commerzbank to axe one in three German jobs

Commerzbank will cut 10,000 jobs and close 340 branches by 2024 as it focusses on digitisation in an effort to slash cost and ensure profitability.

The bank, which employs nearly 50,000 people worldwide, says that one out of every three jobs in its home market of Germany will go while its branch network of 790 will be reduced to 450.

Meanwhile, €1.7 billion will be pumped into IT over the next four years in an effort to digitise and automate business processes.

The plan is designed to cut costs by €1.4 billion, or around 20%, by 2024 as the German lender puts "profitability before growth".

The latest restructuring programme comes after a September 2019 plan to reduce the bank's headcount by 2300 and close 200 branches in the wake of an abandoned merger with Deutsche Bank.

Manfred Knof, chairman, board of managing directors, Commerzbank, says: "Our goals are very ambitious, but we will do everything necessary to achieve them. Thereby, the Bank will create value for customers, employees, shareholders, and society as a whole."

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