AI Push Drives Commerzbank to Slash 3,000 Jobs in Strategic Overhaul

In order to fund further expenditures in artificial intelligence, Commerzbank intends to let off 3,000 employees. The move was made as the second-largest listed bank in Germany fortified its defences against a takeover bid by UniCredit of Italy. On May 8, the Frankfurt-based bank announced the layoffs as part of its "Momentum 2030" strategy, which aims to achieve more aggressive profitability targets. Days following UniCredit's official launch of a cross-border bid valued at around 37 billion euros, this tactic was revealed.

Commerzbank's most recent reductions constitute its third significant restructuring initiative in recent years. Roughly one-third of the bank's German employees—roughly 10,000 people—were let go earlier this decade. In addition, 3,900 jobs were cut last year.

Commerzbank Opting for AI Swing

Commerzbank has issued a warning that the most recent reorganisation, which involves accelerating automation and reshaping processes, would cost approximately 450 million euros. A massive efficiency push driven by AI to reduce costs, improve productivity, and raise revenues is at the heart of the approach. Between 2026 and 2030, the lender intends to invest a total of about 600 million euros in artificial intelligence.

Consequently, the banking firm wants to enhance risk controls, increase revenue by 20%, and cut operational costs by 70%. Customer service, software development, compliance, and fraud prevention are some of the areas where the bank has already begun to use AI. More than 70% of the 30,000 customer enquiries handled by its virtual retail banking assistant "Ava" each month are resolved automatically. More than 14,500 people utilise Commerzbank's "CobaGPT" large language model internally, producing more than 7.5 million prompts.

Commerzbank's AI Initiatives

Additional AI-driven projects include fraud detection systems, automated Know Your Customer (KYC) procedures, AI-supported pricing tools for deposits and loans, and agentic AI applications that aim to cut transaction monitoring times by 60% or more. The bank has stated that it anticipates a reinvestment of some of the approximately 10% of organisational capacity that will be made available through AI-enabled workplace efficiency.

Digital product offerings, advanced analytics, and sales models powered by artificial intelligence are all being used more frequently by Commerzbank to enhance productivity and implement value-based pricing. Redesigning procedures, incorporating AI throughout the organisation, and decreasing dependence on external resources are all parts of its strategy. In the face of sluggish economic growth and fierce competition from bigger cross-border rivals, European banks are under increasing pressure to update their operations and maintain their margins, prompting the reorganisation. Commerzbank achieved better-than-expected results in the first quarter, even though it laid off some employees. The 913 million euros in net profit were 9.4% more than the 868 million euros predicted by analysts.

The most recent overhaul has rekindled memories of the abandoned 2019 merger discussions between Deutsche Bank and Commerzbank, which had raised concerns about the potential loss of up to 30,000 jobs in Germany's banking sector.