Germany’s Commerzbank, in its strategic review in August, is likely to announce more branch closures and job cuts, Reuters reported, citing its supervisory board member Stefan Wittmann.
Commerzbank announced its plans to cut thousands of jobs last year. Now, the bank is weighing to cut more jobs.
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The bank is expected to announce the plans during its second-quarter earnings release in August, the news agency reported.
Wittmann, who is also an official at Germany’s Verdi union, represents labour on the supervisory board.
He told the news agency: “There will be considerably more branch closures and more job losses than previously announced.”
In 2019, Commerzbank stated that it would reduce the count of its branches from around 1,000 to approximately 800.
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By GlobalDataThe bank had also then announced that it would also axe 4,300 positions and hire 2,000 people in “strategic areas”.
Since 2017, Commerzbank shares have plunged by nearly 60% as low-interest rates and competition affected its performance.
The bank’s top investor Cerberus acquired a 5% stake in 2017.
Cerberus sought for two board seats besides cost reductions and a shift in strategy.
However, Commerzbank has rejected Cerberus’ demand for the seats in the board.
The bank is partially owned by the state after a bailout during its last financial crisis.
Commerzbank recently reported a loss in its first-quarter earnings as the Covid-19 pandemic spiked its bad loans.
