Germany’s Commerzbank AG to slash 1,800 jobs

Germany’s Commerzbank AG plans to cut 1,800 jobs by the end of 2015 in a bid to slash costs and revamp ailing retail businesses.

According to a statement released by the Germany’s second-biggest bank on Friday, the cuts will be done on the basis of “mutual agreements” between employees and the bank officials.

This comes after the Frankfurt-based Commerzbank issued a statement on January 24 saying that “Overall, the bank is assuming that 4,000-6,000 jobs will be cut group-wide by 2016. The exact number will be determined in negotiations with employee representatives that are likely to start in February.”

The layoffs signify the impact of the eurozone crisis on the bank. Commerzbank, like other European banks, has struggled with the economic downturn in Europe.

As another cost cutting measure, Commerzbank is set to increase business hours at all its branches and make staffs work shifts in changing locations.

Meanwhile, in November 2012, the German Finance Ministry warned that there will be “a noticeably weaker economic dynamic in the winter half-year.”

In September 2012, the Munich-based Ifo economic institute reported that Germany’s business confidence had fallen to the lowest level since February 2010.

Europe plunged into financial crisis in early 2008. Insolvency now threatens heavily debt-ridden countries such as Greece, Portugal, Italy, Ireland and Spain.

The worsening debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.