Germany: Commerzbank to cut jobs after Deutsche merger fails

According to a report from Reuters, Commerzbank announced it wanted to shed thousands of staff and close a fifth of its branches in a strategy overhaul, after the German lender’s attempt to merge with Deutsche Bank failed.

The bank, partly owned by the German government after a bailout and struggling to generate profits, also aims to sell a stake in its Polish subsidiary mBank and absorb its Comdirect online brokerage unit. 

Commerzbank stated the strategy plan would involve investment of €1.6 billion ($1.8 billion), with €750 million (US$826.5 million) going into new technology and the rest earmarked for restructuring.

The bank stated the draft measures would be discussed at a meeting of the supervisory board on September 25 and 26. It stated no final decision had yet been taken.

Klaus Nieding, vice president of shareholder lobby group DSW, said the bank needed to do more than cut costs. “The big question remains how the bank wants to make money in the future,” he said.

Full Content: Reuters

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