Commerzbank Unveils 3,000 Job Cuts and Dividend Hike in Fight to Stay Independent

Commerzbank CEO Orlopp announces 3,000 AI job cuts, dividend hike, and buyback to fend off UniCredit bid. Stock near record highs as meeting nears.

Bettina Orlopp is taking a two-pronged approach to convince shareholders that Commerzbank can thrive without a Milanese merger. The chief executive on Friday outlined plans to eliminate 3,000 positions, driven by a deeper-than-expected wave of automation, while the board has simultaneously proposed raising the dividend to €1.10 per share and securing a new buyback mandate worth up to 10% of capital.

The AI-led restructuring will hit external call centres and IT services hardest. Orlopp stressed that compulsory redundancies among the core workforce remain off the table, with the bank relying on natural attrition to execute the overhaul. The move is widely seen as a strategic counterpunch to UniCredit’s unsolicited all-share offer, which values each Commerzbank share at 0.485 of its own paper and currently sits at around €32 per share — well below the Frankfurt lender’s market price.

A clear rejection of the “shrinkage strategy”

UniCredit now holds nearly 30% of Commerzbank’s equity, and its offer, launched early this month, was immediately dismissed by Orlopp as a “shrinkage strategy.” She has also sharply criticised ECB Vice-President Luis de Guindos for what she views as one-sided encouragement of cross-border consolidation, arguing that it effectively backs the Italian bid. The German government, which retains a 12% stake, continues to support management’s opposition.

At the annual general meeting in Wiesbaden on Wednesday, Orlopp will face shareholders directly — but the formal, reasoned opinion required under takeover law has yet to be published. Management has so far advised investors to take no action, while leaving the door open for negotiations only if UniCredit tables a “compelling premium” that respects Commerzbank’s existing business model.

Stock near record highs as deadline looms

Commerzbank shares recently changed hands at €36.48, up roughly 42% over twelve months, as takeover speculation has fuelled the rally. Yet the relative strength index has climbed above 83, signalling that the stock is heavily overbought. On Friday, the share price edged about 1% lower in pre-market trading, reflecting lingering uncertainty ahead of the AGM.

The regular acceptance period for UniCredit’s bid runs until 16 June, with a possible extension until 3 July. Even if the Italian bank succeeds, regulatory hurdles mean it does not expect to complete the transaction before 2027. For now, the Frankfurt-based lender is betting that its combination of AI-driven cost cuts and generous capital returns will persuade investors that staying independent is the better bet.