Commerzbank offers early retirement to 3,000 workers
Commerzbank AG has sent out early retirement offers to about 3,000 employees, a first key step in the lender’s move towards cutting 9,600 jobs over four years, said two sources.
The offer entitles eligible employees born before 1962 to a €30,000 (RM145,605) sweetener, said the sources.
Some employees will have until the end of next month to decide and others until the end of August, they said. The average salary at the bank last year was about €79,600, based on total salary and wage costs of €3.5 billion and 44,267 employees.
Chief executive officer Martin Zielke unveiled a turnaround strategy in September that calls for automating operations and shedding about a fifth of the workforce to cut costs after a slump in earnings.
Under his predecessor Martin Blessing, the bank eliminated 5,200 jobs to counter volatile markets and low interest rates.
Commerzbank’s corporate client division will be hardest hit, shrinking by about 2,400 employees at the end of 2020, according to an internal document seen by Bloomberg.
The aim is to reduce staff at Frankfurt headquarters to 7,419 from 9,840 through 2020, the document shows.