GERMANY's second-biggest bank is cutting a staggering 10,000 jobs as part of efforts to be maintain profits amid negative interest rates implemented by the European Central Bank (ECB).
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| Commerzbank has announced a huge job cull |
The staff cull amounts to around a fifth of its 45,000 strong workforce. And comes just days after investors panic over the solvency of its bigger rival Deutsche Bank.
Commerzbank said the huge restructure will cost €1.1billion (£995million) and is aimed at making profits more sustainable by 2020.
The efforts will also see the lender combine business segments and move towards digital banking.
The firm said it would try to create 2,300 roles in areas in growing parts of the business, so that the net reduction of job losses would stand at 7,300.
It's thought Deutsche could reveal similar cost-cutting plans, despite already announcing plans to lose around 10 per cent of its staff.
It comes as European Banks struggle to generate profits amid ultra low interest rates and a struggling eurozone economy.
Deutsche is also set to be a hit by billions of pounds worth of fines and litigations costs, which investors fear it can't afford.
The worry prompted the bank's share price hit record lows this week.
Markets were also disturbed by comments from Angela Merkel's government that it wouldn't step in with a state rescue of banks if it were needed.
The fallout also saw Commerzbank's share price slide sharply.
The bank today said it expected to turn a small net profit in full-year 2016, down from €1.1bn (£995m) last year.
http://www.express.co.uk/finance/city/715864/Deutsche-now-Commerzbank-slashes-10-000-jobs-amid-profit-fears
