Germany’s second largest bank has announced massive layoffs according to this Street report.
Germany’s second-biggest lender, booked an €807 million ($954 million) restructuring charge in the three months through June for job cuts spurred by its digital overhaul.
The charge, which drove a larger-than-expected quarterly loss, is less than the €1.1 billion Commerzbank initially expected to spread over two years, largely because of previous layoffs, staff turnover and savings through transfers and replacements, the lender said in June.
The company announced it would fire some 9,600 employees in September 2016 when executives introduced the Commerzbank 4.0 plan, a four-year initiative to buoy profits by focusing on two core segments, corporate and consumer clients, and automating much of its operations.
“We have booked the provisions for the personnel reductions early and in full and have made further progress in the implementation of our strategy,” said chairman Martin Zielke. “We are ahead of target for client growth, partly because we have invested.”
Commerzbank expects its new strategy to draw 2 million additional customers in its private and small business group while boosting revenue as much as 9.4% to €10.3 billion.
“It will take a while for this client growth to be reflected in revenue growth,” Zielke noted. “In our two transformational years, 2017 and 2018, we are thereby laying the foundations for a sustainably higher profitability.”
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