Manfred Knof, the new chief executive of Commerzbank, one of Germany‘s largest private banks, said on Thursday 28th that after reviewing the bank’s operational strategy, it has decided to implement a 10,000-strong downsizing and close hundreds of branches, Reuters reported. Manfred Knof just took office on Jan. 1.
Commerzbank is struggling with low profitability due to the change of management and the uncertainty of its strategy. Since the global financial tsunami in 2008, the German financial sector has been hit hard, and Commerzbank has been unable to emerge from the crisis despite aggressive restructuring and tens of thousands of job cuts.
In a statement, Manfred Knof said, “We have to implement a thorough streamlining and cost-cutting. This is a very ambitious goal.
According to his new plan, the bank will reduce its current workforce by about a quarter by 2024, and will reduce its 800 locations to 450, with a final decision to be made by February 3.
These plans will be finalized by February 3. Although the aforementioned business plan still needs to be considered by the supervisors and approved by the management camp, the bank decided to announce it in advance because the news was revealed in the media.
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