Germany's Commerzbank to cut 9,000 jobs in restructuring: Handelsblatt
A Commerzbank logo is pictured during the bank''s annual news conference in Frankfurt. Image Source: Reuters
Commerzbank is planning to cut around 9,000 jobs over the coming years as Germany's second biggest lender pushes ahead with a restructuring plan, Handelsblatt reported on Monday, citing unnamed sources in the finance industry.
Squeezed by negative European Central Bank (ECB) interest rates, German banks have been seeking ways to boost revenue by passing on costs to corporate customers and increasing fees for retail depositors, but profit margins remain thin. That leaves cost cutting high on the agenda.
Handelsblatt said it's not clear yet whether Commerzbank will resort to outright dismissals.
The bank's restructuring will run through 2020 with costs of up to 1 billion euros ($1.13 billion or Rs 7,517.61 crore), according to the newspaper.
Dividend payments for 2016 will be scrapped as part of the strategy revamp due to be published by chief executive Martin Zielke on Friday, the newspaper said.
The Frankfurt-based bank employs more than 50,000 people. A spokesman declined comment.