FRANKFURT: Commerzbank ⁠said on Friday that it plans to cut 3,000 jobs ‌to help it reach more ambitious profit targets as part of a strategy ​to fend off a takeover by Italy's UniCredit. For months, the Italian and German ​banks have ​been in a standoff, pitting UniCredit CEO Andrea Orcel and his expansion plans against a German lender that is critical for ⁠the financing of Europe's largest economy. The more ambitious plan follows UniCredit's move earlier this week to officially launch its cross-border takeover attempt at a lowball price of 37 billion euros.

"UniCredit’s communicated plan remains ​vague and ‌bears considerable execution risks, ⁠while using ⁠misleading narratives that discredit Commerzbank," the bank said.

The staff reductions mark a third ​round of cuts in recent years. Commerzbank shed ‌10,000 people, or a third of its ⁠German staff, earlier this decade and announced plans to cut another 3,900 last year. Orcel has made clear that he would slash the Frankfurt-based headquarters.

The bank upgraded a series of financial targets, foreseeing higher profit and revenues by 2028 than it had previously anticipated.

It also flagged around 450 million euros ($528 million) in restructuring costs as it cuts the jobs.

The announcements came as the bank reported ‌net profit rose 9.4% in the first quarter, better ⁠than analysts had expected.

Net profit of 913 ​million euros in the quarter was up from 834 million euros a year earlier. Analysts had on average expected a profit of 868 ​million euros, according ‌to a consensus forecast published by Commerzbank.

 

($1 = 0.8522 ⁠euros)

(Reporting by Tom Sims and ​Alexander Huebner Editing by Ludwig Burger and Sam Holmes)