Germany’s second-largest lender, Commerzbank, has announced a significant workforce reduction of up to 3,000 positions as it accelerates efforts to strengthen its financial performance and maintain its independence amid mounting pressure from an Italian rival. The move forms part of a broader overhaul designed to deliver sharper profitability while embracing emerging technologies, including a substantial commitment to artificial intelligence.
The job reductions represent the latest phase in a series of efficiency drives. Earlier this decade, the Frankfurt-based bank already eliminated around 10,000 roles—roughly one-third of its domestic workforce—and followed up last year with plans for nearly 4,000 more cuts.
Commerzbank currently employs about 40,000 staff members globally, with roughly 25,000 based in Germany.
Management has stressed that the latest reductions will be handled responsibly, with some new hires expected in areas focused on operational improvements. In parallel, the bank intends to allocate €600 million toward artificial intelligence initiatives between 2026 and 2030.
Executives anticipate this technology push will generate annual cost savings of around €500 million by the end of the decade, potentially influencing future hiring decisions as AI capabilities evolve.
These steps coincide with upward revisions to the bank’s medium-term financial goals. Commerzbank now projects revenue of €15 billion in 2028, an increase from its previous forecast of €14.2 billion.
It also aims for a net profit of €4.6 billion that year, up from the earlier target of €4.2 billion. Additional improvements include a better cost-to-income ratio—targeted at 46 percent in 2028 and 41 percent by 2030—and a net return on equity approaching 17 percent by 2028.
For the current year, the lender has lifted its expected net result to €3.4 billion. The changes come alongside €450 million in anticipated restructuring expenses tied to the workforce adjustments.
The timing of the announcement underscores Commerzbank’s determination to chart its own course.
Italy’s UniCredit, which has built a stake of nearly 30 percent and become the bank’s largest shareholder, formally launched a hostile takeover bid valued at approximately €35-37 billion earlier this week.
That offer sits below current market valuations and has drawn sharp criticism from Commerzbank’s leadership.
Chief Executive Bettina Orlopp highlighted fundamental differences in strategic vision, describing UniCredit’s approach as vague and reliant on narratives that undermine the German bank’s achievements. UniCredit’s own restructuring blueprint had envisioned far deeper cuts—potentially 7,000 positions across the combined entity.
The proposed merger has sparked intense debate in Germany, where Commerzbank plays a vital role financing the country’s influential small- and medium-sized enterprises.
Chancellor Friedrich Merz publicly rejected the bid, labeling it aggressive and damaging to trust. Berlin retains a roughly 12 percent ownership stake from the 2008 financial crisis bailout, and some officials have floated ideas for increasing that holding to safeguard national interests.
Union representatives have voiced similar concerns, warning that foreign control could jeopardize thousands more jobs. Commerzbank’s first-quarter results provided a positive backdrop for the strategy shift.
Net profit climbed 9.5 percent to €913 million, surpassing analyst expectations and driven by disciplined cost management and strong commission income amid volatile markets. By demonstrating stronger standalone prospects through technology investment and leaner operations, the bank hopes to persuade shareholders that independence remains the superior path forward in an era of cross-border banking consolidation.
