Commerzbank to Eliminate 500 Jobs at Failed Eurohypo UnitNicholas Comfort
Commerzbank AG, Germany’s second-biggest lender, will eliminate about 500 jobs at its Eurohypo unit by the end of 2015 as it winds down the business.
The public finance and commercial real estate lender, now know as Hypothekenbank Frankfurt, has finished talks with labor representatives and will cut about 350 of the positions in Germany, Frankfurt-based Commerzbank said in a statement today.
Commerzbank pledged to wind down and close Eurohypo as a condition for a government bailout following the 2008 collapse of Lehman Brothers Holdings Inc. The bank said last week it will cut a total of 4,000 to 6,000 jobs over the next four years to reduce costs and meet its profit goals.
Commerzbank agreed with labor representatives to implement measures to ease the impact of redundancies, according to an internal memo obtained by Bloomberg.
The company didn’t rule out forced job cuts and the unit’s offices in Cologne and Leipzig will be shut while the Berlin and Hamburg branches give up some business, according to the memo. Commerzbank had 56,287 staff in September, its third-quarter earnings statement showed.