Germany's Commerzbank will cut thousands of jobs as the bank battles to fend off a takeover bid from Italian banking giant UniCredit. About 3,900 full-time positions will be cut by the end of 2027, the company announced on Thursday.

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.