Commerzbank: over 7,000 redundancies on the cards
(CercleFinance.com) - Commerzbank could lay off over 7,000 of its workforce and close more than 400 bank branches, Bloomberg said on Monday.
This decision appears to follow an announcement from Cerberus Capital Management, the bank's 2nd largest shareholder, which calls for the German banking group to make cost reduction efforts.
Final reduction targets have not yet been decided on, as some executives remain sceptical about the feasibility of such reductions, Bloomberg says. Currently, different options and scenarios are being discussed, although Bloomberg says that no decision has yet been taken.
Martin Zielke and CFO Bettina Orlopp could present the cost-cutting targets at a meeting of the bank's supervisory board on Wednesday, it says.
Note that in mid-May Commerzbank announced an operating loss of 277 million euros for the first three months of the year, compared to a profit of 246 million eurog a year ago, with the pandemic slicing a huge 479 million euros from this result.
Copyright (c) 2020 CercleFinance.com. All rights reserved.