Commerz to axe 3,400 jobs

October 15, 2001 Posted: 1552 GMT

LONDON (CNN) -- Commerzbank, Germany's fourth-largest bank, said on Monday it would cut 3,400 jobs to rein in costs.

Commerzbank posted a third-quarter loss on Monday of 120 million ($109 million) in the months of July and August as earnings remained weak and bad debt provision was increased.

The company, which has twice failed to find a merger partner, in August reported second-quarter profit plunged 87 percent amid gloomy financial markets and rising costs.

"As the very difficult business environment also rules out a more optimistic forecast for September, the bank's management board assumes that the results was again negative," the bank said.

Banks are under pressure to cut costs as a downturn in global markets and slowing economies weigh on their top-heavy cost structures. Deutsche Bank, which has already announced 2,600 job cuts, said last week it might increase that number.

The company – a persistent target of takeover speculation – has been under pressure from investor group Cobra, which owns 10 percent of Commerzbank, to find a merger partner.  .

Several European banks have been reported this year to be interested in Commerzbank, including Deutsche Bank, HSBC and ABN Amro.

On September 11, Commerzbank ended merger talks with Italian bank Unicredito amid differences in valuation and tumbling share prices. At the time the company introduced a hiring freeze in a bid to save 240 million

Shares in Commerzbank (FCBK) fell 5.8 percent to 16.40 in afternoon trade in Frankfurt. The company's stock has halved in value from a peak this year of 33.60 in January.

	Want the full story? Search for free company info...
	Enter Company Name:-