German lender Commerzbank AG (CRZBY.PK) has decided to reduce 5,200 jobs across the group by 2016, as part of the strategic agenda announced in November 2012.
The lender had already decided to cut 800 jobs, primarily in the Non-Core Assets segment and another 500 jobs are planned to be reduced in the Group's subsidiaries in Germany.
The remaining job cuts of 3,900 have now been approved by the Works Council. Of these, as announced in February, around 1,800 jobs will be affected in the Private Clients Segment.
Further, the group will invest to increase around 1,000 jobs to implement the bank's strategic agenda. As of March 31, Commerzbank had around 45,000 full-time employees.
As part of its strategic agenda, the lender plans to invest over 2 billion euros in the next four years, even as it will maintain a stable cost base.
In order to achieve this, the bank needs to increase its earnings power while further reducing its expenses through adjustments to the material and personnel cost bases, Commerzbank noted.
According to the company, ''The agreement reached today with the Works Council of Commerzbank AG Germany foresees an extension of the exclusion of enforced redundancies to 2016, originally offered until the end of 2014, if the agreed reduction targets are met.''
Alternative positions will be brokered for the affected employees wherever possible through an internal job board and support centres.
The stock rose 0.2 percent at 7.55 euros on Wednesday.
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