Deutsche Bank and Commerzbank merger could threaten 30,000 jobs
In the short term, around 10,000 jobs will be under threat, said Jan Duscheck, board member with Deutsche Bank who is also a representative of German trade union Verdi.
As many as 30,000 jobs could be lost over the long term if the merger between Deutsche Bank and its rival Commerzbank takes place, a supervisory board member with Deutsche told German television news channel n-tv broadcaster on Monday.
Most of the jobs at risk are based in Germany, said Jan Duscheck, the board member with Deutsche who is also a representative of German trade union Verdi. In the short term, around 10,000 jobs will be under threat, he added.
‘In our opinion a possible merger would not result in a business model that is sustainable in the long term,’ said Mr Duscheck.
Both banks on Sunday confirmed talks about a merger, but the announcement was met with strong opposition from trade unions and some reservations from shareholders.
The announcement on the merger has, however, seen a rally in the stocks of both banks. Deutsche Bank was 4.15% higher while Commerzbank gained by 7.21% on Monday’s close.
The supervisory boards of both banks will meet on Thursday where the merger is expected to be discussed.
Struggling banks
The two banks currently employ 140,000 people worldwide, with 91,700 staff at Deutsche and 49,000 staff in Commerzbank.
The German government had pushed for the combination as it was concerned with the health of Deutsche, which has been struggling to generate sustainable profits since the financial crisis in 2008.
Commerzbank meanwhile, has 15% of its stake belonging to the government following a bailout.
Berlin has also long been looking for a reliable national-banking champion to support its export-led economy.
A merged bank would account for one-fifth of Germany’s retail banking market. It would also have roughly €1.8 trillion in assets, such as loans and investments, and a market value of around €25 billion.
A deal would mean the banks would have to raise billions in new cash, which could be hard for investors to stomach given the banks weak financial positioning.
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