Commerzbank's Boardroom Battle: UniCredit's Overhaul Plans Meet Berlin's Red Lines

UniCredit's Orcel plans up to 7,000 job cuts at Commerzbank and a supervisory board reshuffle, as Berlin demands binding guarantees.

UniCredit is laying the groundwork for a sweeping restructuring of Commerzbank that would strip thousands of jobs from Germany's second-largest listed lender and could cost both its chief executive and supervisory board chairman their posts. According to reports from financial circles, the Italian bank's CEO Andrea Orcel envisions a multi-year turnaround, with as many as 7,000 full-time positions eliminated in Germany alone. Annual savings from a merger are put at up to EUR 2 billion, with initial cost reductions of EUR 1.2 billion.

The prospect has drawn sharp pushback from labor. The Verdi union branded the plans confrontational and warned of significant strain on the workforce, while employee representatives fear knock-on effects for remaining locations and customer service.

A Boardroom Shake-Up in the Works

To drive the overhaul, UniCredit is pressing for a rapid reshuffle of Commerzbank's leadership bodies. The Financial Times reported that Orcel intends to replace all shareholder representatives on the supervisory board at an extraordinary general meeting early next year. That would put CEO Bettina Orlopp and supervisory board chairman Jens Weidmann at risk of early removal, even though Orlopp's contract still has several years to run.

Any such change must clear strict regulatory hurdles. Before new supervisory board or management board members can take office, candidates must complete the required supervisory fitness assessment. Germany's financial watchdog BaFin participates in that review, while the final decision rests with the European Central Bank.

Berlin, which holds the second-largest stake in the Frankfurt lender, has tied its stance to far-reaching commitments. At a September meeting, Finance Minister Lars Klingbeil demanded that Commerzbank keep its Frankfurt headquarters, its stock exchange listing and its mid-sized business lending. The government also insists on retaining its own supervisory board seats to protect federal interests. Media reports indicate Berlin wants binding assurances from Orcel without delay: Commerzbank should remain a listed stock corporation headquartered in Frankfurt, expand its SME business and keep key decisions in Germany. Per dpa-AFX, the government is also pressing for guarantees on employee rights and works council dialogue. UniCredit declined to comment on the reports, according to dpa-AFX.

Orlopp's Counter-Offer

Orlopp, for her part, has advocated a constructive dialogue with UniCredit. Speaking to Swiss business weekly Finanz und Wirtschaft, she said the goal is to create more value for shareholders and stakeholders going forward. Over the medium term, she considers integrating UniCredit subsidiary HypoVereinsbank into Commerzbank conceivable — provided the Italian group reaches the necessary majority.

Analyst Adjustment and Share Performance

Valuation has moved further into the spotlight amid the takeover speculation. Borja Ramírez Segura of Citigroup revised his assessment of the Frankfurt lender yesterday, lifting his price target on Commerzbank shares from EUR 40 to EUR 42 while keeping a "Neutral" rating. The new target sits above the current trading level: the stock was quoted at EUR 41.65 in pre-market trading, having gained 15 percent since the start of the year. During the main session, the shares changed hands at EUR 41.35, putting the company's market capitalization at EUR 45.60 billion.

Buybacks Continue Ahead of Q3 Report

Commerzbank is pressing ahead with its announced capital measures regardless of the takeover debate. The bank repurchased 1,976,889 of its own shares between September 14 and September 18 inclusive, bringing the total since September 4 to 4,217,261 shares. Fresh insight into operating performance arrives in early November: the bank has scheduled the release of its third-quarter 2026 figures for November 5, 2026.