Germany's Commerzbank To Axe 10,000 Jobs & Close 340 Branches 

Germany's Commerzbank To Axe 10,000 Jobs & Close 340 Branches 


The second-largest lending bank in Germany - Commerzbank - is planning to let go of 10,000 people and closing 340 branches by the year 2024. The bank has been facing issues with the online and cashless modes of payments and the job loss may affect one in three jobs in the country, the statement said.


Due to the digitalisation drive, the bank will considerably reduce its network of branches from 790 to 450, an official reportedly said. The official went to add that the plan is going to reduce the costs by 20 per cent by the year 2024.


Commerzbank is the yet another bank to announce job cuts following the footsteps of its rival Deutsche Bank. As the bank is going into the virtual mode of transactions and payments, the need to have banks has been reduced.  Over 2020, the bank let go of 2,900 jobs in a move to reduce costs to the company which has been reporting losses consistently. By the 2020 September, its employee count stood at around 40,000. 


Beginning 2021, the job getting the bank on its feet will be with its new boss, Manfred Knof, an erstwhile member of the Deutsche Bank.  Commerzbank is now focussing on digitising its business and stressing on reducing costs across all areas in an effort to increase profits.


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