Commerzbank is considering cutting thousands of jobs to fend off unnecessary advances from UniCredit, according to people familiar with the matter.
Two people familiar with the matter said the plans had not yet been formalized and were expected to be announced to workers' councils in the coming weeks. A person familiar with the discussions told the Financial Times that the number was likely "in the low thousands".
The German bank's new chief executive, Bettina Orlopp, will present an updated strategy on February 13 to show that the bank can boost profitability and dividends paid to shareholders on its own.
UniCredit, led by CEO Andrea Orcel, has established a foothold in Commerzbank and could become the bank's largest shareholder if it receives regulatory approval.
Oser has made no secret of his ambitions for Commerzbank, which includes a full takeover of the German rival.
Commerzbank investors generally support the deal, with the exception of the German government, which still holds a 12% stake after selling a 4.5% stake to UniCredit last year.
Analysts expect the merger to save billions of euros in costs as the enlarged bank eliminates duplicate functions.
A key point in the union-government boycott is the prospect of UniCredit wielding the ax in Germany, where it already has a German subsidiary HypoVereinsbank (HVB).
Commerzbank's union has warned that a UniCredit takeover could put as many as 15,000 jobs at risk - making the issue more politically sensitive ahead of next month's German federal election.
Even without being taken over by the Italian bank, Commerzbank is likely to initiate spending cuts that would mark another chapter in its long-term restructuring.
Commerzbank has cut thousands of jobs and closed about half of its 800 branches since former CEO Manfred Knof began a turnaround in 2021.
The changes have helped boost operating profits and allowed the bank's share price to triple over the past three years and launch the first share buyback program in its history in 2023.
But UniCredit's increased stake puts additional pressure on the German lender to prove it can deliver better profitability and value to shareholders as an independent company than as part of Italy's banking empire.
Germany's second-largest listed bank has struggled with higher costs than rivals such as HVB. Olop has raised Commerzbank's performance targets since being approached by UniCredit in September.
Given the potential synergies involved in the deal, even some insiders have expressed doubts that Commerzbank wants to make a standalone case that provides more value to shareholders than a merger would.
One person familiar with the matter said Orlop is now planning to accelerate further restructuring, which was previously seen as an option for the future.
Another person familiar with the discussions said digitization, especially the adoption of artificial intelligence, could lead to job losses as IT functions could be "near-shored" to other European countries besides Germany.
Commerzbank said the strategy update, which will be published next month alongside full-year results, is still being developed and "we cannot preempt upcoming discussions on the board of management and supervisory boards".