Commerzbank investigates thousands of job cuts to answer Andrea Orsel.

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Commerzbank is cutting thousands of jobs as it seeks to fend off unwanted takeovers from Italy’s UniCredit, people familiar with the matter said.

The so-far informal plans were expected to be unveiled to the Labor council in the coming weeks, two of the people said. A person familiar with the discussions told the Financial Times that the number could be in the “low thousands”.

The German lender’s new chief executive, Bettina Orlop, is set to present an updated strategy on February 13 to show the bank can improve profitability and payouts on its own.

Led by CEO Andrea Orsell, UniCredit has built a position in Commerzbank The bank’s largest shareholder has the potential to do so if it gets regulatory approval.

Orcel He made no secret of his ambitions for Commerzbank, including complete control of his German rival.

Investors in Commerzbank generally supported the deal – except for the German government, which still holds a 12 percent stake after selling a 4.5 percent stake to UniCredit last year.

Analysts estimate that the merger will result in billions in savings, as large banks eliminate duplication of effort.

It may be a critical point of opposition from both the unions and the government. UniCredit to hold the ax in Germany, where it already has a German subsidiary Hypoverensbank (HVBB).

Commerzbank unions have warned that a takeover of UniCredit could create up to 15,000 jobs online – an issue of great political sensitivity ahead of Germany’s federal election next month.

The possibility of Commerzbank being reduced even without a takeover by the Bank of Italy suggests another phase in a longer-term restructuring.

In the year Commerzbank has cut thousands of jobs and closed half of its 800 branches since 2021, when former CEO Manfred Knopf began a turnaround effort.

The changes have helped boost operating profit and triple the bank’s share price over the past three years, launching its first-ever share buyback program in 2023.

But Unicredit’s stake building has put more pressure on it to ensure it delivers better profitability and value to shareholders than part of the Italian banking empire.

Germany’s second-largest listed bank has struggled to cope with higher costs than rivals including HVB. Since UniCredit’s presentation in September, Orlop has raised Commerzbank’s performance targets.

Even some insiders are skeptical that Commerzbank could present a stand-alone issue that would offer shareholders more value than a merger, given the potential synergies in the deal.

A person familiar with the matter indicated that Orlop plans to accelerate further restructuring, which was previously seen as an option in the future.

Another person familiar with the discussions pointed out that job cuts due to digitization, particularly through artificial intelligence, could be “imminent” for IT jobs in other European countries outside of Germany.

According to Commerzbank, the strategy update, which will be presented next month alongside the full-year results, is still being prepared, and “we cannot prejudge the upcoming discussions in the management and supervisory boards.”