Commerzbank takes axe to UK jobs

HUNDREDS of jobs are to go at Commerzbank in London as the struggling German bank reorganises its global investment business.

A total of 276 sharp-end jobs - traders, dealers, brokers - are to be axed here, while administration staff departures will push the figure way over 300.

A spokesman in Germany confirmed job losses in London would be 'particularly high' after an internal study comparing productivity in Frankfurt and the City came out squarely in favour of the German operation.

Some 900 jobs are to go worldwide - 490 at the dealmaking end and 410 in administration.

The bank has close to 600 people in London. The cutbacks, which will also hit Japan and the US, were unveiled on the back of poor third-quarter results showing investment arm losses of €130m (£91m).

The changes in the division come after the departure of Mehmet Dalman, the firm's head. He quit Commerzbank to set up a hedge fund after the German bank failed to give him backing for expansion.

The review of the investment banking operations was carried out by management consultants Mercer Oliver Wyman on behalf of the board.

The division generated €120m of the group's €415m pre-tax profits in the first quarter, but slumped to a €47m loss in the second quarter after its trading strategy went off the rails.

London staff sources said they had been told to wait for a meeting to learn more about the shape of the cutback programme.