Deutsche Bank to cut 7,000 jobs
Deutsche Bank is axing more jobs with 7,000 people set to go from its equities sales and trading business.
Global headcount will fall from 97,000 to well below 90,000
As reported in February, the bank said it would cut up to 500 investment banking jobs.
In the latest cull, its global headcount will fall from 97,000 to well below 90,000. There is no information on regions or breakdowns, but Deutsche Bank says “associated personnel reductions are underway”.
It aims to reduce headcount in this equities sales and trading area by approximately 25%. In cash equities, it will concentrate on electronic solutions and its “most significant clients globally”. In prime finance, the bank says it will reduce leverage exposure by a quarter, equivalent to a reduction of approximately €50 billion.
“We remain committed to our corporate and investment bank and our international presence – we are unwavering in that,” says Christian Sewing, Deutsche Bank’s chairman of the management board. “We are Europe’s alternative in the international financing and capital markets business. However, we must concentrate on what we truly do well.”
According to Deutsche Bank, these business reductions will contribute to a decrease in leverage exposure in the corporate and investment bank of over €100 billion.
Deutsche Bank says it will accelerate the pace of cost reduction across the organisation. In 2018, as it already announced, the bank envisages adjusted costs not to exceed €23 billion.
For 2019, the management board plans to reduce adjusted costs to €22 billion with “no further significant disposals currently planned”.
The bank’s AGM started this morning (24 May) in Frankfurt (10am – local time).
Shareholders may have things to say as in its latest Q1 results the bank revealed a net income of €120 million, versus €575 million in the prior year period.
