Germany "Other" Bank: Commerzbank To Fire 9,000, 18% Of Its Entire Workforce

Tyler Durden's picture

While the market's attention has been transfixed by the latest crash in the stock of Europe's biggest bank, now that concerns about Deutsche Bank's $2 trillion balance sheet have violently resurfaced, it is worth recalling that Germany's "other" mega bank, DB's smaller rival, Commerzbank, whose balance sheet is hardly looking much healthier, is planning to cut around 9,000 jobs over the coming years as Germany's second biggest lender pushes ahead with a restructuring plan, Handelsblatt reported earlier today, citing unnamed sources in the finance industry.

The round of layoffs would eliminate a massive 18% of the bank's entire workforce.

Like in the case of Deutsche Bank, squeezed by negative European Central Bank interest rates, Commerzbank has been seeking ways to boost revenue by passing on costs to corporate customers and increasing fees for retail depositors, but profit margins remain thin. That leaves cost cutting high on the agenda.

Handelsblatt said it's not clear yet whether Commerzbank will resort to outright dismissals. The bank's restructuring will run through 2020 with costs of up to 1 billion euros ($1.13 billion), according to the newspaper.

In addition to the massive layoffs, the bank will scrap its dividend payments for 2016 as part of the strategy revamp due to be published by Chief Executive Martin Zielke on Friday, Handelsblatt reported.

All the soon to be laid off workers can send their thank you notes to Mario Draghi: no need to even pony up for international postage - the ECB is conveniently located in Frankfurt.

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RawPawg's picture

IT'S CALLED...

Front Running

wildbad's picture

commerzbank was LOADED with Greek debt..their only good performing asset since the Greeks have to pay them off first with each new tranche fix

bamawatson's picture

b hussein homobama has shovel ready jobs for all 9,000 of them

froze25's picture

You see that kind of a flush and your not part of it, you start looking for another job and fast.

JackT's picture

laying off workers costs 1/14th of committing fraud DB-style?  Which, after it's realized that the US is crushing DB with the 14B in fines it'll certinaly be reduced...right?  Who could be so harsh as to plunge the world into the dark ages over some silly fines.

asteroids's picture

Do you think Angela will demand/order customer bail-ins to protect bond and stawk holders of this bank and Douch Bank? Nein. I didn't think so.

JamesBond's picture

What's even funnier is all the EU countries thatowe money to Germany aren't going to pay it back.  Up yours Angela.  

 

 

CheapBastard's picture

Who is going to support all of Angela's rapefugees if they fire all of these hardworking German citizens?

gildedtime's picture

Layed off german workers are now free to immigrate to Syria for the lucrative refugee benefits being offered by Bashar al-Assad.  Think of sitting around in the Golan Heights all day sipping on beers enjoying the views of Israel.

King Tut's picture
King Tut (not verified) gildedtime Sep 26, 2016 4:43 PM

You have to watch out for the bulldozers, though

HalinCA's picture

Merkavas are worse: they don't have those buzzers that go off when they back up or turn ...

Fisherman Blue's picture

Are they going to get in his ass with Reggie and Mooch.

nibiru's picture

Hey, previously it was Commerzbank that pulled their money from the ECB!

 

Unprecedented event. At least we can respect them for this one. Maybe they are planning to take over DB? 

bamawatson's picture

does milburn drysdale still run the beverly hills branch of commerz bank?

WVO Biker's picture

Their arrogant employees earned it.

Fisherman Blue's picture

The sooner this shit show crashes the better of we will be, if not us our children.

SomethingSomethingDarkSide's picture

Fucking fiction peddlers

pods's picture

Die kacke is close to the dampfen.

pods

Latitude25's picture

This bank won't even exist in 2020.

bamawatson's picture

zager & evans agree with you

beargrill's picture

there is less than 1% of chance than anyone will remember the name of this company (can hardly call it a bank) in 2025

buzzkillb's picture

I can't even remember one of the dominos that fell during the last housing bust. Lone Star or was it Loan Star? Some type of star mortgage company that was delisted shortly before Lehman.

CorporateCongress's picture

It's a start, but not enough. Also DB probably needs to shed 50k employees

DetectiveStern's picture

If it's anything like DB it will make them impossible to work with. I fucking hate dealing with DB, practically impossible to get an answer from them on anything.

These cuts will be to frontline staff who actually do stuff rather than the excess middle management that exists in every bank.

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) Sep 26, 2016 2:39 PM

Future AFD voters. 9,000 people are getting the boot? Damn.

Jack Mehoff IV's picture

at this point if you work at a bank and lose your job, it shouldnt be of any surprise

RagaMuffin's picture

Unemployment camps next to refugee camps - there's gotta be an REIT IPO in there somewhere......

bentaxle's picture

"Wir Schaffen das!"

 

Bitte?

silverer's picture

Isn't it amazing that banks are doing so poorly, while the media trumpets nothing but continuous economic recovery and success of government policies? Something is not quite right here.

Mentaliusanything's picture

Fact ...  FV= PV+ I

when (-I) due to CB brilliance

PV declines making

FV < 0

Maffs is not hard

wmbz's picture

"Commerzbank To Fire 9,000"

Of course this will the low end wage earners. They'll most likely cut the staff and pay for the toilet cleaners and floor washers also.

Coming up on years end, got to get the big bonus money upstairs!

hoos bin pharteen's picture

It looks like a prelude to absorption of Deutsche Bank.

aliens is here's picture

Well, Adolf Merkle just had a conference with German CEOs about hiring invaders into jobs they don't qualify, I would say those who are fired are being replaced by unskilled throwbacks from the 7th century.

Infield_Fly's picture
Infield_Fly (not verified) Sep 26, 2016 2:52 PM

LMFAO!!!

RougeUnderwriter's picture

Com and DB need to merge

The Duke of New York A No.1's picture

More than just 1 Lehman this time around.

Cthonic's picture

Sounds about right.  Just about the time I'll complete a quant program and be looking for a job nearer the source of all liquidity, it would be my luck that the whole finance sector implodes.  Maybe FDIC will be hiring...

gregga777's picture

The entire banking system's business model is based on criminal activity of various kinds. In the United States the velocity of money has plunged to depression-type levels, in part due to the realization that banks are criminal enterprises.

There are approximately $1.3 TRILLION in cash and coinage in circulation with only half being within the borders of the United States of America. According to the UST OCC, in 2015 five banks (Citigroup, JP Morgan Chase, Goldman Sachs, Bank of America Merrill Lynch and Morgan Stanley) had derivatives exposures totaling $247 TRILLION*. Or, for those five banks less $.0025 cash available per dollar of derivatives liabilities.

The Public has lost confidence in the banks. They have also lost confidence in the US government. Anytime the US government investigates any bank it finds egregious criminality. Fines meant to restore confidence depletes bank capital, further sapping public and investor confidence.

The fact of the matter is that the banking business model is built entirely on criminality. It is an impossible task to remedy that fact. Confidence in banking continues to drop. The inability of the government to remedy that further saps confidence in government.

Everyone must understand that if you don't have physical possession of your assets you have nothing. Either the government, the Con Street swindlers, the banking gangsters or the crony capitalist conporate criminals will steal it or vaporize it.

And…it's gone. I'm sorry your accounts show balances of $0. Please leave the tellers line so that the next sucker, uh, customer may be served.

Get your assets into your grubby hands NOW or you WILL lose everything.

*Per the UST OCC 2015 report the total derivatives bubble is $553 TRILLION!!!!!

DEATH
TO THE
BANKERS

gregga777's picture

By the way, your liabilities will NOT be gone. The banking gangsters, with the government's assistance, will try to collect every last penny that you owe to them.

gregga777's picture

Coming soon:

• Itexit

• Frexit

• Espexit

• Portexit

• Deutschexit

chosen's picture

Commerzbank is just getting ready for the Deutsche Bank meltdown.  They will probably go down with Deutsche, but it is nice to see they are trying to prepare.

Paracelsus's picture

 

        I read somewhere that when the Fed lowered interest rates to zero around 2001 DB ramped up lending to

       Spanish new construction. Something like 60% of new jobs in Europe in the Spanish construction sector.

        Everyone knows that bubbles have to burst sooner or later. (But no criminal prosecutions).

         Ireland was the first of PIIGs to come on the radar but that was classic misdirection.Spain and Portugal

        are the real financial black holes.Germany loaned to Italy,which loaned to Spain,and so on.

        The Bankers just say "I will be sipping beer in Tahiti when the SHTF!".

            Trouble is they expect the military to protect them. Hmmm.... Loyalty.....

Coldfire's picture

CB is the financial heart of 80% of the German export machine, the so-called mittelstandt. It will shed jobs in retail. It will shed jobs in investment banking. But it will preserve jobs in its 25%+ ROE mid-market commercial banking crown jewel.

Laplacian2003's picture

shit --------------> fan

robnume's picture

I'll bet real money that the EU, itself, announces a "restructure" soon. Or should we call it a "destructure?"