Frankfurt-based Commerzbank will reduce its workforce by 4,300 people and close 200 branches amidst struggles with falling revenues.
The German lender has struggled with declining revenues and profitability for some time. The company’s stock value has dropped by 40% in the past year. It has now announced its strategy to ensure the longevity of the company includes reducing its staff numbers to 46,500 and its number of branches to 800.
“The aim would be to implement the planned headcount reduction as socially responsible as possible,” the bank stated.
Commerzbank also announced that it plans to “invest significantly in technology” and foresees that it will put €1.6bn. “Investments in digitalization, IT infrastructure and growth account for an estimated €750m of this, while restructuring costs in connection with necessary headcount reduction and planned modifications to the branch network account for the remaining €850m,” the bank said in a statement. It will also expand its mobile banking capabilities.
The bank is also looking into a possible merger with Aktiengesellschaft (Comdirect) into Commerzbank.
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