Germany’s second-largest bank, Commerzbank, announced Friday it will eliminate 3,000 positions while boosting its financial projections in an effort to resist an acquisition attempt by Italian banking giant UniCredit.
The Frankfurt-based financial institution revealed its enhanced strategy following UniCredit’s formal takeover bid earlier this week, valued at 37 billion euros ($43.43 billion) — a price below current market rates.
This ongoing corporate battle has created a months-long stalemate between UniCredit CEO Andrea Orcel’s expansion ambitions and the German bank that serves as a crucial financing source for Europe’s biggest economy and its financial center in Frankfurt.
Commerzbank criticized its Italian suitor’s approach on Friday, stating: “UniCredit’s communicated plan remains vague and bears considerable execution risks, while using misleading narratives that discredit Commerzbank.”
The upcoming workforce reduction represents the bank’s third wave of layoffs in recent years. The institution previously eliminated 10,000 positions — roughly one-third of its German staff — earlier this decade, and revealed plans last year to cut an additional 3,900 jobs. Orcel has indicated he would significantly reduce the Frankfurt headquarters if successful.
The German bank expects approximately 450 million euros in restructuring expenses related to the job cuts.
This corporate struggle has evolved into a significant test of Germany’s capacity to resist foreign acquisition attempts and protect its financial sector from losing another major commercial banking institution.
Germany’s number two bank hopes its Friday announcement will demonstrate to investors that it can prosper without foreign ownership.
The institution raised its revenue projection for 2028 to 15 billion euros, up from its previous 14.2 billion euro target. It also increased its 2028 profit forecast to 4.6 billion euros, surpassing the earlier goal of 4.2 billion euros.
Financial analysts had already anticipated Commerzbank would exceed the 2028 objectives established last year.
Orcel surprised Germany’s business and political leaders in 2024 when his Italian bank — also that country’s second-largest — acquired a substantial Commerzbank stake and began advocating for a merger in the most aggressive pan-European banking consolidation attempt to date.
Last month, Orcel unveiled his own restructuring proposal for Commerzbank, projecting cost savings of 1.3 billion euros and workforce reductions of 7,000 employees.
UniCredit, now Commerzbank’s biggest shareholder with nearly 30% ownership, contends that its German rival isn’t reaching its full potential and argues that Europe needs larger banks in today’s unstable geopolitical environment.
Meanwhile, Commerzbank has pledged to maintain its independence. Leadership from both institutions held discussions earlier this year, but negotiations collapsed after Easter.
UniCredit’s acquisition attempt has encountered strong resistance in Germany. On Thursday, German Chancellor Friedrich Merz declared that Germany opposes hostile and aggressive banking sector takeovers.
“This is not how one treats institutions such as a bank in Germany, namely Commerzbank. This is how trust is destroyed, not how new trust is fostered,” Merz stated.
The German government retains a 12% stake in Commerzbank from a bailout during the financial crisis two decades ago. Some politicians and banking officials are urging Berlin to expand its ownership to block UniCredit, though such action would face considerable obstacles.
These developments coincided with Commerzbank’s quarterly earnings report, showing first-quarter net profit increased 9.4% to 913 million euros, exceeding the 868 million euro analyst consensus.
