Commzerbank has joined its European banking peers in 2017, ushering in a fresh round of job cuts that will see 7,800 positions axed, part of the lender’s latest restructuring plan. The move represents the most recent shockwave to hit the banking space, one of the hardest hit industries that has resulted in thousands of jobs lost over the past few years.
The majority of job losses have been relegated to the UK, which ahead of an official Brexit has been seen as the highest candidate for job turnover. A trifecta of rising labor costs, Brexit headwinds, and declining profitability has collectively helped facilitate massive layoffs in not just the UK but also in Europe.
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Commerzbank has been on its own restructuring plan, a move that has been adopted by other groups such as Deutsche Bank and Credit Suisse, among others. The lender had previously floated the idea of jettisoning 9,600 positions last year, which was more than 20% of its global workforce, though has since taken a more muted tone after factoring in trade union laws, according to a Reuters report.
Still, the loss of thousands of jobs does signal that Commerzbank will continue on its restructuring process for the foreseeable future. Interestingly, both Deutsche Bank and Commerzbank have been seen as potential partners in a merger, though both banks deflected from talks last year on accounts of respective restructuring plans.
Earlier today, Deutsche Bank again addressed talks of a merger, though it was unclear whether the additional party included Commerzbank. For now, Commerzbank will soldier forth as it looks to help strengthen its revenues and profits.