Commerzbank announced plans to cut 3,000 jobs and raise its long-term profit targets as it fights to remain independent amid a takeover attempt by Italy’s UniCredit. The German bank said the restructuring would strengthen revenue and profitability by 2028, while criticizing UniCredit’s €37 billion takeover proposal as unclear and risky. Commerzbank also expects around €450 million in restructuring costs tied to the layoffs.

The takeover battle has become a major issue in Germany’s financial and political circles, with UniCredit CEO Andrea Orcel pushing for a major cross-border European banking merger. UniCredit now holds just under a 30% stake in Commerzbank and argues that larger European banks are needed to compete globally. However, Commerzbank insists it can perform better independently and unveiled stronger targets, including €15 billion in revenue and €4.6 billion profit by 2028.

Germany’s government has openly opposed the takeover effort, with Chancellor Friedrich Merz criticizing hostile banking acquisitions and warning they damage trust. Germany still owns a 12% stake in Commerzbank from a past financial crisis bailout, and some politicians are urging Berlin to increase its holding to block UniCredit’s advances. The announcement came as Commerzbank reported a 9.4% rise in first-quarter net profit, beating analyst expectations.

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