Commerzbank Considers Cutting Up to 2,000 Additional Jobs

(Bloomberg) --

Commerzbank AG is considering cutting an additional 2,000 jobs as part of its strategy update this fall, as Chief Executive Officer Martin Zielke contends with a weaker economy and the prospect of even lower interest rates.

The bank would seek to achieve those cuts by 2022 or 2023, according to people with knowledge of the matter. Various other scenarios with different headcount reduction figures are also being discussed and no decision will be taken until the bank’s strategy meeting in late September, they said, asking not to be identified disclosing internal deliberations.

A spokesman for the lender declined to comment.

Zielke is currently working on new financial targets and deeper cost cuts, after having to give up many of the targets in his current turnaround plan that runs through 2020. That plan had aimed to cut headcount by 7,300, though the bank this year revised that number to less than 5,300. Shares of the lender fell to a record low this month as Germany’s economic contraction and expectations for lower interest rates threaten to undercut Zielke’s strategy.

Bloomberg reported earlier this week that the bank is considering more job cuts as part of the new plan, which is also likely to include closing hundreds of branches. BoersenZeitung said yesterday that Commerzbank is considering slashing between 1,800 and 2,500 positions.

To contact the reporter on this story: Steven Arons in Frankfurt at sarons@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Christian Baumgaertel

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