German lender Commerzbank said on Thursday it plans to cut 3,900 jobs as it unveiled more ambitious financial targets, part of a strategy revamp designed to head off advances of Italy's banking giant UniCredit for a tie-up, which were heating up in recent months.
The job cuts, mainly in Germany and expected to take place by 2028, will be accompanied by hiring outside the country, meaning the bank's full-time positions will remain steady at 36,700, the bank said.
For months, Commerzbank's management, under the leadership of CEO Bettina Orlopp, has been working on a strategy update that she has said would reveal the "significant value potential" of the bank.
Commerzbank, which is partly state-owned and has labeled UniCredit's moves as hostile, said it would incur 700 million euros ($730 million) in restructuring charges in 2025.
It also said it would raise some of its 2027 targets.
It now targets a net profit of 3.8 billion euros in 2027, up from a previous goal of 3.6 billion euros. In addition, it now aims for a cost-to-income ratio of 53% in 2027, up from a previous goal of 54%.
