Germany's Commerzbank to cut 10,000 jobs, slash branches

In this April 1, 2020 file photo, the buildings of the banking district are reflected in the river Main in Frankfurt, Germany. Due to the coronavirus the economy worldwide expects heavy losses. More than 50,000 people have died after contracting COVID-19 in Germany, a number that has risen swiftly over recent weeks as the country has struggled to bring down infection figures. (AP Photo/Michael Probst, File)

FRANKFURT, Germany (AP) — Germany's Commerzbank said Thursday that management proposed to cut 10,000 jobs under a restructuring program aiming to increase digitalization, slash branches and cut annual costs.

The company said in a statement to investors that the cuts would affect every third job at the bank in Germany. Increased use of digital technology would enable shrinking the branch network from 790 to 450. Costs would be lowered by 1.4 billion euros ($1.7 billion), or around 20% by 2024.

It said revenues were expected to remain stable as the bank puts profitability ahead of growth.

“The bank intends to focus and digitalise its business model, considerably reduce costs in all areas, and significantly increase its profitability by 2024,” the statement said. "Going forward, the bank will consistently put profitability before growth, in particular when it comes to the efficient use of capital or adequate pricing of products and services.

The plan is to be discussed by the board of directors on Feb. 3 and details are to be presented at the bank's annual results news conference on Feb. 11.