Germany’s second biggest lender, Commerzbank, plans to slash more than 5,000 jobs during the next three years amid a wave of job - cutting by banks across Europe.
Management and employees ' representatives at the bank reached an agreement on Wednesday on eliminating 5,200 positions, which is about 12 percent of Commerzbank’s 45,000 full - time staff.
“Together with the employees ' representatives, we have found a way to achieve considerable cost reductions on the one hand, and to secure our competitiveness and earnings power through investment on the other, ” board member and human resources chief Ulrich Seiber said in a statement.
The bank, which has become 17 percent state-owned since receiving a bailout during the crisis, posted a net loss of 94 million euros ($126 million) in the first three months of 2013. Commerzbank said in January that it would cut 4,000 to 6,000 jobs until 2016 as it tots up the toll from the financial and sovereign debt crises. About 3,900 positions are due to be eliminated at the core bank in Germany, including 1,800 cuts at the retail bank, as part of a 2 billion euro ($2.7 billion) overhaul announced in November 2012. Meanwhile, on June 3, the International Monetary Fund (IMF) halved its 2013 economic growth forecast for Germany to 0.3 percent. “Amid still elevated euro area uncertainty, we now project GDP (gross domestic product) in Germany to expand at around 0.3 percent in 2013,” the IMF said in a statement. Europe plunged into financial crisis in early 2008. The worsening debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.