Commerzbank AG, the German lender that got 18.2 billion euros ($24.3 billion) in state aid, plans to cut more than 5,000 jobs, Handelsblatt reported.
The bank’s board and employee representatives reached an agreement on group-wide job cuts, according to an e-mailed extract from an article to be published in the newspaper today, citing two people it didn’t name who are familiar with the negotiations. The worker’s council is scheduled to vote on the plan tomorrow and an agreement is seen as “very likely,” according to the newspaper.
Germany’s second-biggest lender by market value in January told employees it will cut 4,000 to 6,000 jobs over the next four years as part of its plans to meet profit goals and repay debt to the government. The bank last month raised capital for the fifth time in four years and reported a loss for the second consecutive quarter after booking a 493 million-euro charge in the first quarter for restructuring, including cutting staff.
Richard Lips, Frankfurt-based head of communications of Commerzbank, didn’t immediately respond to an e-mailed request for comment on the newspaper report before business hours.
Commerzbank Chief Executive Officer Martin Blessing last month said the reorganization will start bearing fruit next year as the bank sees revenue pressure as well as higher provisions and costs this year. The bank hasn’t paid a dividend since the financial crisis.
Commerzbank has slumped 31 percent this year, compared with an 4 percent gain in the 40-stock Bloomberg Europe Banks & Financial Services Index. Five capital increases since 2008 have erased more than 90 percent of the bank’s share price.