As predicted in a previous post, being that Commerzbank is a subsidary of Deutsche Bank, you should’ve expected this without being shocked.
GERMANY’s second-biggest bank is cutting a staggering 10,000 jobs as part of efforts to be maintain profits amid negative interest rates implemented by the European Central Bank (ECB).
In another shock move, Commerzbank announced it would also axe its shareholder dividend payments for the first time ever.
The staff cull amounts to around a fifth of its 45,000 strong workforce. And comes just days after investors panic over the solvency of its bigger rival Deutsche Bank.
Commerzbank said the huge restructure will cost €1.1billion (£995million) and is aimed at making profits more sustainable by 2020.
The efforts will also see the lender combine business segments and move towards digital banking.
The firm said it would try to create 2,300 roles in areas in growing parts of the business, so that the net reduction of job losses would stand at 7,300.
Full article: German economy ON ROCKS: Now Commerzbank slashes 10,000 jobs amid profit fears (Express)