Cerberus Management wants Commerzbank to cut 7,000 jobs amid coronavirus pandemic

Germany’s second-biggest bank, Commerzbank (CBKG.DE), said on Tuesday that the U.S. activist investor Cerberus Capital Management wants them to slash more than 7,000 jobs as a part of its strategic plan to reduce the company’s revenue costs amid the coronavirus pandemic. Cerberus is one of Commerzbank’s largest shareholders with a stake of more than 5%.

“A strategy that is influenced by Cerberus is definitely not in the interest of employees. Currently, different options and scenarios are being discussed. No decisions have been taken,” Commerzbank’s Trade Union Secretary Stefan Wittmann said in a statement. Wittman also serves as a labour representative from Commerzbank’s Social Welfare Committee.

Cerberus announced two weeks ago that it wants two board seats as well as cost cuts and a strategy shift at the company. Commerzbank has already rejected the demand for the board seats.

“Cerberus’ approach is rude and inappropriate. Plus, we don’t have any vacancies right now,” Wittmann said in an interview with Reuters.