Commerzbank boss says AI to drive large share of planned job cuts

Commerzbank chief executive Bettina Orlopp said artificial intelligence would account for a large share of the roughly 3,000 job cuts planned by the lender as it seeks to fend off a takeover by Italy's UniCredit.

"AI is very powerful in various areas," Orlopp told dpa, adding the impact of the technology was greater than expected a year ago.

She said Commerzbank aimed to protect its core workforce as much as possible, with cuts focused on external call centre capacity and outside IT contractors.

Germany's second-largest listed bank has announced job reductions alongside ambitious profit and return targets through 2030 as it tries to convince shareholders not to sell their stakes to UniCredit.

Orlopp reiterated that Commerzbank aims to avoid compulsory redundancies. "Given the demographics within our bank, we will make this process as socially responsible as possible," she said.

UniCredit, which already controls around 30% of Commerzbank, launched an offer earlier this month for all outstanding shares. The Milan-based bank is offering 0.485 new UniCredit shares for each Commerzbank share and aims to increase its holding without triggering a mandatory full takeover bid, which would be more costly.

Commerzbank has described UniCredit's approach as hostile and has received backing from the German government, which holds around 12% of the bank. It aims to publish a detailed response to UniCredit's offer early next week. The bid would represent a discount compared to Commerzbank's recent share price.

Orlopp criticized the proposal, saying UniCredit's takeover offer was "effectively a shrinkage strategy for our business model."

She added that Commerzbank had never refused talks, but said further discussions would only make sense "if UniCredit signals that it is prepared to reconsider the level of the offer to our shareholders and discuss the business model."