Commerzbank plans to cut 9600 jobs by 2020

Commerzbank plans to cut around 9,600 jobs in the next few years and scrap its dividend for the time being as it restructures to become profitable. The restructuring plan through 2020 will cost about €1.1 billion ($1.2 billion). Actually it employs about 45,000 full-time staff.

"The focus on the core business, with some business activities being discontinued, and the digitalisation and automation of workflows will lead to staff reductions amounting to around 9,600 full-time positions," Commerzbank said.

Commerzbank has presented its draft strategic and financial objectives until 2020 to the Supervisory Board for consideration. The Board of Managing Directors will decide Friday on the strategic objectives after discussions with the Supervisory Board. "Profit volatility and risks from regulatory changes will be reduced and capital freed up for the core business" with the retreat from investment banking, the statement continued.

Like other German banks, the Frankfurt-based company is fighting headwinds from low interest rates in the eurozone, tough regulation, intense competition, and the arrival of new digital actors on the market.

Commerzbank expects a small net profit for 2016 as a whole and aims for a net return on tangible equity of at least 6% by the end of 2020.

The German state remains a shareholder in Commerzbank to the tune of 15 percent after coming to the lender's rescue in 2008.