FRANKFURT--Commerzbank AG (CBK.XE), Germany's second largest
bank by market value, Wednesday confirmed it will shed about 12% of
full-time jobs through 2016, sweetening the measures by agreeing to
refrain from forced redundancies if possible.
Labor union Verdi criticized the measures, saying they will
"create substantial uncertainty" among the bank's staff and that
doubt remains about the bank's sustainability and business
model.
The job cuts are part of a strategic agenda announced in
November, when the bank said it plans to invest more than 2 billion
euros ($2.7 billion) through 2016 while maintaining the cost base
stable. To achieve this, it needs to increase its earnings power
while further reducing non-staff and staff costs.
Investments will mainly be made in information technology and in
modernizing the retail bank business, which the bank plans to align
with current customer demand for more online services, mobile
banking, and specialized but more neutral advice when making key
financial decisions.
The bank will shed a total of 5,200 jobs, out of 45,000
full-time positions at the end of March. Of these, 3,900 will be
cut in Germany, with almost half of them, or 1,800 jobs, coming
from the retail banking operation. The bank plans to cut another
500 full-time jobs abroad and in subsidiaries in Germany. Another
800 jobs cuts will come mainly from the internal bad bank and were
already decided in late 2012 and early 2013.
If strategic targets are met, the bank will create up to 1,000
full-time jobs, but in different areas, such as in its business
with German corporate clients, and in auditing and compliance.
The measures are part of the bank's attempt to return to
profitability again after it managed to wean itself off of state
aid last months. The bank required billions of euros in capital
injection by the German government in early 2009, after its
ill-timed acquisition of Dresdner Bank announced shortly before the
collapse of Lehman Bros.
"It is not a sign of strength that the bank has to cut jobs
again immediately after completing the integration of Dresdner
Bank," said analyst Dirk Becker, of brokerage Kepler Cheuvreux, who
has a reduce rating on the share.
Italy's UniCredit SpA has cut about 4,000 jobs in recent years,
about 3% of its workforce.
-Write to Ulrike Dauer at ulrike.dauer@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires