Commerzbank said on Thursday it would cut 3,900 jobs and unveiled more ambitious financial targets as part of a strategy revamp designed to head off UniCredit's advances for a tie-up between the German and Italian lenders.

Commerzbank said on Thursday (Feb 12) it would cut 3,900 jobs and unveiled more ambitious financial targets as part of a strategy revamp designed to head off UniCredit’s advances for a tie-up between the German and Italian lenders.

German lender Commerzbank said Thursday it plans to cut about 3,900 jobs, around 10 percent of its workforce, seeking to fight off pressure for a tie-up from Italian bank UniCredit.It has since boosted its holding in the German bank to around 28 percent.

Germany's Commerzbank is preparing staff cuts and revamped financial targets in its efforts to fend off tie-up advances by Italy's UniCredit , multiple people with direct knowledge of the plans told Reuters.

Germany's Commerzbank is considering slashing thousands of jobs as the bank battles to fend off a takeover bid from Italian banking giant UniCredit, according to multiple media reports. A Commerzbank spokeswoman declined to comment on the reports,

The battle for Commerzbank, pitting one of Italy’s biggest banks against the German establishment, has become a test case of the country’s ability to fend off foreign suitors and prevent its financial centre from losing one of its few remaining big commercial banks.

Commerzbank said on Thursday it would cut 3,900 jobs and unveiled more ambitious financial targets as part of a strategy revamp designed to head off UniCredit's advances for a tie-up between the German and Italian lenders.

The German lender plans to lay off around 9% of its workforce in a bid to boost returns and convince investors of its standalone prospects as it fends off an approach from Italy’s UniCredit.

Commerzbank announced it will eliminate 3,900 full-time positions by 2028, largely in its native Germany, as it unveiled a spate of new strategic targets.