Commerzbank is to slash 1700 jobs in Germany in a volunatary redundancy programme to be completed by the end of the year.
The cuts mark the start of a three-year cost reduction programme announced in January that will lead to the loss of 10,000 jobs and the closure of 340 branches by 2024.
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.
Following negotiations with union leaders, Commerzbank will offer voluntary termination agreements to the workforce from July 2021.
“The voluntary programme is an important step in the necessary headcount reduction,” comments 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 €470 million to cover the cost of the programme.