New Delhi, January 19: Commerzbank, one of Germany's largest banks, is reportedly considering layoffs as part of a strategic move to protect itself from potential advances by UniCredit. Reports indicate that the bank is exploring the possibility of job cuts that could affect the number in the thousands. The bank might be looking to streamline operations and enhance its position in the market.

As per a report of Financial Times, Commerzbank is looking to lay off thousands of employees to fend off unwanted advances from Italy's UniCredit. The plans for layoffs at Commerzbank, which are not yet finalised and are expected to be presented to the workers' council in the coming weeks. Amazon Layoffs: E-Commerce Giant Lays Off Around 200 Employees in Fashion and Fitness Group in US Amid Restructuring Measures.

UniCredit, under the leadership of chief executive Andrea Orcel, has established a position in Commerzbank that could enable it to become the bank's largest shareholder, pending regulatory approval. The situation seems to add urgency for Commerzbank's efforts to address its operational strategies and workforce structure.

The German lender's new chief executive, Bettina Orlopp, is scheduled to present an updated strategy on February 13. The strategy is said to demonstrate how the bank can enhance profitability and increase payouts to shareholders independently. According to multiple reports, Commerzbank's supervisory board chairman, Jens Weidmann, has indicated that there is little chance of a successful merger with UniCredit following the Italian bank's unexpected acquisition of a significant stake in the German lender.

Analysts predict that a potential tie-up between Commerzbank and UniCredit could lead to billions of euros in cost savings, as the bank would likely eliminate duplicate functions. While investors in Commerzbank have generally shown support for such a deal, the German government remains an exception. The government reportedly holds a 12% stake in Commerzbank after selling a 4.5% holding to UniCredit last year. Starbucks Layoffs: American Coffeehouse Chain Plans Corporate Job Cuts Amid Turnaround Strategy.

Since 2021, when former chief executive Manfred Knof initiated a turnaround effort, Commerzbank has already implemented significant changes. It laid off thousands of employees and closed approximately half of its 800 branches.

(The above story first appeared on LatestLY on Jan 19, 2025 02:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).