By Matthias Goldschmidt

UniCredit Chief Executive Andrea Orcel said a significant number of jobs would be eliminated if it took over German peer Commerzbank but the figure would be lower than what has been speculated.

"I think there will be at headquarters a significant number [of job cuts], but a lot less than the numbers that have gone around," Orcel said at the Handelsblatt Banking Summit in Frankfurt. He didn't give a specific figure.

In December, the German lender's general works council warned that a takeover by UniCredit could result in the loss of around 15,000 jobs.

However, Commerzbank would also have to reduce its headcount as standalone institution, Orcel said. "In five to seven years, they will cut probably more jobs than they would cut consolidating with us," the executive said.

No entity can survive in Germany with a cost-income ratio of 57% when competitors have a cost ratio of less than 40% or, in the case of fintechs, less than 30%, Orcel noted. The entire banking sector must continuously increase its efficiency, he added.

Orcel made it clear that his main concern in a combination would be on revenue rather than on costs.

Commerzbank and UniCredit's German subsidiary Hypovereinsbank are highly complementary, both geographically and in terms of customer structure. "We would not touch the [branch] network, which means we would enhance the network and we will invest in the network," he said.

The Italian bank first disclosed a stake in Commerzbank around a year ago and has built on this through the purchase of financial instruments to overtake the German government as the lender's largest shareholder. It currently holds a 26% participation, which it will be able to increase to around 29% through the conversion of derivatives into shares.

Orcel said he expects UniCredit's ownership in Commerzbank to reach just under 30% by the end of the year. Whether a takeover will take place is up to the shareholders to decide, the executive added. He said that he currently feels no pressure to take action.

Write to Matthias Goldschmidt at matthias.goldschmidt@wsj.com

(END) Dow Jones Newswires

September 04, 2025 08:45 ET (12:45 GMT)

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