Commerzbank to cut 3,100 jobs
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Another 1,500 jobs are to go at Commerzbank headquarters in Frankfurt
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FRANKFURT, Germany (CNN) -- Commerzbank, Germany's second-largest bank, said on Monday it plans to cut an additional 3,100 jobs in a bid to return to profitability.
The loss-making bank said the jobs would go by the end of 2004. The move, which comes on top of the 4,300 jobs that have already be eliminated, should help to slash operating costs by 688 million euros ($740 million).
Commerzbank posted its first annual loss in its 133-year history as the rate of small and medium-sized company failures in Germany gathered pace -- as Europe's biggest economy struggled to recover from a recession in late 2001.
"It personally hits us very hard that we have to enforce another staff reduction, as behind these numbers are individual hardships," said Chairman Klaus-Peter Muller.
"But in light of banking's rapid structural changes and the continuing drop in demand for financial services, we had no other choice, since this is necessary to secure the remaining positions."
After the latest job cuts, Commerzbank will have a staff of 32,000. Another 1,500 jobs are to go at its central offices and headquarters, while 1,100 would be eliminated at its international operations and 500 at its investment banking business, the bank said.
The bank has said it aims to cut annual costs to below 5 billion euros this year from 5.15 billion euros in 2002 and wants to bring expenses down to 1999 levels of 4.5 billion in 2004.
Commerzbank stock fell 5.4 percent to 6.24 euros in mid-afternoon trading in Frankfurt on Monday.
