The supervisory board of commercial banks, Germany’s second largest private bank, met on the 3rd local time to discuss the “cost-saving plan” for layoffs and closure of branches.
Eventually, the Supervisory Board approved the draft strategy submitted by the Board of Directors, agreeing that the German Commercial Bank would lay off more than 39,600 full-time employees worldwide by 2024 and reduce the number of branches in Germany from the current 790 to 450.
It is reported that when the German Commercial Bank announced the draft strategy platform last week, it stressed that sustainable profits will be achieved through “complete restructuring and all-round digital transformation”.
Affected by the COVID-19 epidemic, German Commercial Bank suffered heavy losses in 2020.
Preliminary data show that the bank’s operating loss last year reached 233 million euros.
Therefore, the German Commercial Bank plans to save about 1.4 billion euros in costs through a series of measures such as layoffs and the closure of branches.
It is worth mentioning that about 10,000 people will be laid off, which means that one-third of Germany’s banking jobs will be affected.
Because of the pressure on the whole industry by digitalization and low interest rates, Deutsche Bank of Germany actually expressed its willingness to implement economy measures to significantly cut spending as early as last year.
By the end of 2020, the bank’s leadership had reached a consensus on the layoff of 2,300 full-time employees.
However, the layoffs will be accompanied by the expansion of recruitment efforts by individual departments, including the technology sector; Comdirect, an online subsidiary of German Commercial Bank, will also integrate and launch more digital products.
