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Commerzbank to slash 9600 jobs

AAP logoAAP 29/09/2016

Commerzbank, Germany's second largest bank, partly owned by the German government, says restructuring will cut 9600 full-time jobs.

At the same time it said it aimed to create 2300 new workplaces in business growth areas, according to statement outlining Commerzbank's draft strategic and financial objectives until 2020.

"The digitisation and automation of work-flows will lead to staff reductions amounting to around 9,600 full-time positions," a statement said.

The bank also foresaw "restructuring costs in the region of 1.1 billion euros ($A1.60 billion)."

This meant Commerzbank "will cease dividend payments for the time being and will retain its full earnings."

Various German media outlets reported on the measures, describing them as "Commerzbank 4.0."

Thursday's statement said the implementation of its objectives would be discussed by the Board of Managing Directors on Friday.

By the end of 2020, Commerzbank should have increased its profitability sustainably, then concentrate on its core businesses and digitise 80 per cent of its relevant processes, the statement said.

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