Posted on 09/28/2016 9:29:16 PM PDT by Lorianne
Commerzbank aims to cut around 9,000 jobs in the next few years and will scrap its 2016 dividend as part of efforts to reduce costs in the face of negative interest rates.
This is according to a source close to the bank's supervisory board.
The job cuts will be spread over the next few years up to 2020, but the size of the cull, representing nearly a fifth of the workforce at Germany's second biggest bank, implies that compulsory layoffs cannot be ruled out, the person said.
"This is much more radical than previous measures," the person said.
The revamp is estimated to cost around €1 billion and Commerzbank plans to eliminate its 2016 dividend to help pay for it, the person said.
Commerzbank declined to comment.
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