Deutsche Bank looks to slash costs, jobs
Germany’s struggling Deutsche Bank says it’s slashing thousands of jobs as it reshapes its stocks trading operation and refocuses its global investment banking business on its European base.
The bank said Thursday it would cut its workforce from 97,000 to “well below” 90,000.
It said the reductions were already “underway.” It said head count in the stocks trading business would be reduced by about 25 per cent.
The cuts will cost the bank some 800 million euros ($1.2 billion) this year.
Deutsche Bank has struggled with high costs and troubles with regulators.
The bank replaced its CEO in April after three years of annual losses and lagging progress in streamlining its operations.
New CEO Christian Sewing has said the bank would refocus on its European and German customer base and cut back on more costlier and riskier operations where it doesn’t hold a leading position.
Sewing said the bank was committed to its international investment banking operations but must “concentrate on what we truly do well.”
The new strategy means stepping back from several decades of global expansion in which the bank sought to compete with Wall Street rivals such as Goldman Sachs or JPMorgan Chase.
Sewing replaced John Cryan in April with a mandate to accelerate the bank’s wrenching restructuring.
It has suffered billions in losses from fines and penalties related to past misconduct. Progress in cutting costs has remained elusive. Sewing on Thursday affirmed the bank’s goal to hold costs to 23 billion euros this year and 22 billion next year.
Board chair Paul Achleitner was set to face disgruntled investors on Thursday at the bank’s annual shareholder meeting. The bank’s share price has sagged and it paid only a small dividend of 11 euro cents last year.