Com­merzbank of­fers early re­tire­ment to 3,000 work­ers

New Straits Times - - Business World -

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.

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