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 upping the ante in exploring defense strategies to maintain a stand-alone strategy in the face of a potential takeover by Italy's UniCredit.

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.

The job cuts are expected to number between 3,000 and 4,000 people out of a workforce of about 42,000 employees.

Commerzbank AG (OTC:CRZBY)'s CEO, Bettina Orlopp, is preparing to announce significant job cuts across the bank's back office operations in an upcoming investor day on Thursday, as reported by Bloomberg News.

Commerzbank AG Chief Executive Officer Bettina Orlopp is set to unveil job cuts across the back office as she seeks to prove the lender’s future is better without a takeover by UniCredit SpA.