Socially responsible reduction of 1,700 full-time equivalents by the end of 2021 through a voluntary redundancy programme
Commerzbank takes the next steps in restructuring. (Credit: Commerzbank AG.)
Commerzbank is making good progress on its roadmap towards the cost reductions targeted in its strategy 2024. The Bank has reached an agreement with the Central Works Council on a voluntary programme for the necessary headcount reduction. A reduction in Germany totalling around 1,700 full-time equivalents is to be achieved through the programme by the end of 2021.
“The voluntary programme is an important step in the necessary headcount reduction,” commented Sabine Schmittroth, Member of the Board responsible for Group Human Resources. “We are quickly providing instruments that will already reduce the cost base in the coming year.”
Under the programme, entitled employees are to be offered termination agreements from July 2021. Employees who make use of the voluntary programme will leave the Bank by the end of the year.
In the first quarter of 2021, the Bank will book restructuring charges amounting to a total of around €470 million. The majority results from the voluntary programme. Further restructuring expenses are mostly booked for the restructuring abroad and for real estate. The Bank had announced that it is spending a total or around €1.8 billion for restructuring in the context of its strategy 2024. Including the provisions for the voluntary programme, around €1.4 billion have already been booked.
Source: Company Press Release