Biggest Bank In Germany Cut 6000 Employees

The economic crisis in Europe incessantly hit the banking industry on the continent. Because the profit and return on investment were cut, banks in Europe had to do all the maneuvers to cut costs.

As performed by Commerzbank AG, Germany's second largest bank. The company is headquartered in Frankfurt Kaizerplatz it will lay off six thousand employees around the world from early February 2013 to early 2016. This amount is equivalent to 10 percent of the total employees.

Through a written statement, Commerzbank said the rationalization of employee management is done to cut corporate budgets that can not be covered by revenue. Commerzbank also claimed to have had talks with the Alliance of Labour before announcing the plan. The news agency Agence France Presse reported there might be rationalized the number of employees will increase to 18 per cent of all employees Commerzebank.

Once the employee rationalization plan was announced, shares of Commerzbank fell 1.9 percent. Many parties are suspicious, trimming employees to support the company's expansion plans. At the end of 2012, Commerzbank announced plans to invest in the retail banking sector. This project requires funding worth U.S. $ 2.7 billion, which should be available in 2013.

But when viewed as a whole, the performance of Commerzbank indeed was deteriorating. In June 2012, ratings agency Moody's cut the rating Commerzbank that holds a negative outlook. Moody's threatened to continue menurunkam Commerzbank rating because it has investment in bonds of European countries are quite large. In addition, the credit outlook for the retail investment and main business Commerzbank worsened.

Weakening Xommerzbank can not be separated from the influence of the German economy is getting worse. The German government estimates economic growth rate will fall 0.04 percent in 2013 due to the impact of the eurozone debt crisis.