The merger of the two largest banks in Germany puts at risk up to 30,000 jobs

The merger of the two largest banks in Germany puts at risk up to 30,000 jobs


BERLINUpdated:

The potential merger between Deutsche Bank and Commerzbank, the two largest banks in Germany, threatens to destroy up to 30,000 jobs, almost one in five workers out of the 140,700 employees that both entities added at the end of 2018, according to the initial estimates of the union Ver.di and organizations such as the Center Financial of Bavaria.

"Unfortunately we would have to assume that in such a scenario there would be an immediate threat for 10,000 jobs and in the long term up to 30,000, especially in Germany," the head of the banking sector of the Ver.di union, Jan Duscheck, told the German network 'n-tv', collected by Europa Press.

"From our point of view, such a merger would not serve to create a business model that would be sustainable in the long term," added the union representative, who sits on the Supervisory Board of Deutsche Bank.

In this regard, the director of the Bavarian Financial Center, Wolfgang Gerke, believes that the merger between Deutsche Bank and Commerzbank "does not make any sense", noting that both entities are still addressing inherited problems, such as the integration of Postbank.

"If you suddenly have to lay off 30,000 employees that generates scandal," Gerke has pointed to the 'n-tv', warning that this would not be very well received by customers and suggesting that entities bet on other strategies, including the rationalization of their IT services and collaborate with savings banks.

For his part, the vice president of the DSW association, focused on the protection of retail investors, Klaus Nieding, fears an even greater negative impact on employment. "I'm afraid we're talking about potentially five-figure job cuts, between 30,000 and maybe 50,000 jobs," he told the newspaper 'Süddeutsche Zeitung'.

Deutsche Bank, the largest bank in Germany, confirmed on Sunday that the entity has started talks and negotiations to merge with its biggest competitor in the country, the bank Commerzbank, in which the German Government maintains a participation slightly higher than 15%.

Specifically, the entity has reported that it is "reviewing its strategic options" for consolidation in the German and European banking sector, for which it will focus on improving the "growth profile" and "profitability".

However, Deutsche Bank warned that it has only started negotiations for the moment, so "there is no certainty that any transaction will occur".

"We have to value opportunities as they emerge," Deutsche Bank CEO Christian Sewing told bank employees. "Consolidation in the German and European banking sector is important for us, so we have to assess how we want to take part in shaping it," he added.

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