20.01.2025 10:52
Germany's leading banks, Commerzbank, plans to lay off thousands of employees in order to counter the unwanted takeover bid from Italian UniCredit. According to a report by the Financial Times, these plans are still in the early stages and are expected to be presented to the works council in the coming weeks.
The world-famous German bank Commerzbank is preparing for a new round of layoffs. Preparations have begun for the measure taken to reduce costs. As a strategic move against Italian UniCredit's efforts to increase its control, Commerzbank, one of Germany's leading banks, plans to lay off thousands of employees.
UniCredit controls approximately 28% of Commerzbank's shares; 9.5% of this is through direct ownership, while the remainder is provided through financial instruments. Jens Weidmann, Chairman of the Supervisory Board of Commerzbank, stated that despite UniCredit's move, the likelihood of a friendly merger between the two banks is low.
PAST LAYOFF PLANS
Commerzbank has previously carried out layoffs to reduce costs and increase profitability. In 2016, the bank announced that it would lay off 9,600 employees. Additionally, in 2013, it had announced plans to part ways with between 4,000 and 6,000 employees.
RESTRUCTURING AND FUTURE STRATEGIES
Commerzbank's current layoff plans are seen as a defensive mechanism against UniCredit's unwanted approach. This step is believed to be taken to enhance the bank's operational efficiency and maintain shareholder value. Details of the plans are expected to become clearer in the coming weeks.