Commerzbank to cut 3,900 jobs in Germany by 2028 amid strategic overhaul
FRANKFURT: Commerzbank, Germany’s second-largest lender, announced Thursday it will eliminate 3,900 full-time positions by 2028, primarily in Germany. This move is part of a broader strategic overhaul aimed at maintaining its global headcount at 36,700, despite planned staffing increases in selected international locations.
In its strategic update, Commerzbank projected it would incur around 700 million euros ($730.7 million) in before-tax restructuring costs in 2025. Following these charges, the bank is targeting a net result of 2.4 billion euros for the year. Commerzbank plans a payout ratio exceeding 100% over the 2025-2028 period, after accounting for restructuring costs and Additional Tier 1 (AT 1) bond coupons.
The bank reported revenue of 11.1 billion euros for 2024, up from 10.461 billion euros in 2023. Commerzbank had revealed its record annual performance two weeks ahead of its scheduled financial results release to comply with German legal requirements, as its capital return significantly surpassed market expectations.
The bank’s net profit for 2024 surged by 20% to 2.68 billion euros ($2.78 billion), beating forecasts. Commerzbank also announced plans to repurchase 400 million euros worth of shares and increase its dividend payout to 0.65 euros per share, up from 0.35 euros per share in the previous year.
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