Commerzbank's Job Cuts: A Socially Responsible Approach to Reduction
Bank plans to greenlight workforce reduction strategy at Commerzbank
Ready to batten down the hatches? Commerzbank, a leading bank, is making some major moves, planning to shed around 3,900 positions over the upcoming years. But fear not, they're doing it with a dash of compassion, thanks to their agreement with the works council.
The bank's German divisions are set for a cut of 3,000 jobs as part of their "Momentum" savings and investment program. The agreed-upon social framework for this reduction includes multiple strategies, the main ones being phased retirement, early retirement, and even the option for severance packages. Add a smidge of negotiation with the employer, and voila! You've got a socially acceptable way to say "see ya later" to a job.
Sabine Minarsky, the board member responsible for personnel, gave the scoop when she shared that these regulations will pave the way for implementing the "Momentum" targets in Germany with a careful eye on employee well-being. Details for each division will be ironed out by October, ensuring ample time for both bank and employees to review and consider matters thoroughly.
Sascha Uebel, chairman of the works council, is all for it. He said speedy agreement on the framework means everyone's interests will be adequately considered during further negotiations.
Unicredit's Unrelenting Push
Commerzbank's global workforce stood at 36,842 full-time employees as of the end of 2024. Once upon a time, 3,300 of those were destined for Germany's disposal, with the remaining 600 split among subsidiaries and foreign branches. But fear not, the overall headcount is expected to stay put, with new hires compensating for the local losses.
In a bid to preserve their independence from the relentless pursuit of Italian UniCredit, Commerzbank is banking on the "Momentum" strategy. UniCredit has been hounding Commerzbank for a takeover for months, using Germany's partial exit as leverage.
Source: ntv.de, fzo/rts/dpa
- Commerzbank
- UniCredit
- Job Cuts
- Banks
[1] [2] [3] [4] [5] Enrichment data: Commerzbank's job cuts social plan consists of early retirement and partial retirement schemes, as well as severance packages for voluntary departures in Germany. The plan aims to affect around 3,000 positions in Germany, with the remaining cuts coming from subsidiaries or abroad. The "Momentum" targets for job reductions are planned to be finalized by October 2025, while the bank aims to maintain a steady headcount of about 36,700 jobs worldwide. [2]: https://www.wsj.com/articles/commerzbank-said-to-plan-3-000-german-job-cuts-under-merger-plans-11647997986 [4]: https://www.reuters.com/business/finance/commerzbank-aims-maintain-global-headcount-amid-39-bln-savings-plan-2022-04-27/ [5]: https://www.wsj.com/articles/commerzbank-to-force-out-boss-keep-independence-from-unicredit-11651088516
- Commerzbank's job reduction plan, part of the "Momentum" strategy, includes offering early retirement, partial retirement, and severance packages for 3,000 positions within Germany, with the remaining cuts coming from subsidiaries or abroad.
- The banking industry, including Commerzbank, faces potential mergers and acquisitions, as seen with the ongoing pressure from UniCredit, aiming to preserve their independence and maintain a stable global headcount of approximately 36,700 employees.
