Wednesday, June 19, 2013

Commerzbank to cut 5,200 jobs

FRANKFURT: Germany's second-largest lender Commerzbank said on Wednesday it will cut 5,200 jobs, about 12 percent of its 45,000 full-time staff, adding to job-shedding by banks across Europe.

Banks including Lloyds, state-owned Dutch bank ABN AMRO and HSBC have been cutting jobs this year as tougher regulation after the global financial crisis and weak investment returns squeeze profit margins.

Commerzbank, 17 percent state-owned since a bailout during the crisis, posted a net loss of 94 million euros ($126 million) in the first three months of this year and booked a 493 million euro restructuring charge linked to 4,000-6,000 job losses.

Around 3,900 jobs will be eliminated at the core bank in Germany, including 1,800 cuts at the retail bank. These are part of a 2 billion euro overhaul announced in November, which includes a revamp of retail business in Germany.

The German operations employ about 41,000 staff. Because around 1,000 jobs will be created at Commerzbank's Mittelstandsbank unit that works with medium-sized companies, net job losses will be reduced. Commerzbank will be able to cut headcount without forced redundancies, supervisory board member Mark Roach said.

The cuts do not include staff reductions at Hypothekenbank Frankfurt, a unit formerly known as Eurohypo.

Source: http://economictimes.indiatimes.com/news/international-business/commerzbank-to-cut-5200-jobs/articleshow/20668126.cms

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