Deutsche Bank to cut over 7,000 jobs
FRANKFURT: Deutsche Bank will cut global staff numbers by more than 7,000 in the first major move by its new chief executive officer (CEO) to reduce costs and restore profitability after years of false starts.
Germany’s biggest bank said yesterday it would reduce global headcount to well below 90,000 from the current 97,000, with staff numbers in equities sales and trading falling by 25 per cent. The bulk of those jobs are in New York and London.
After an abrupt management reshuffle last month, Deutsche Bank said it aimed to scale back its global investment bank and refocus on Europe and its home market after three consecutive years of losses.
It had flagged cuts to United States bond trading, equities, and the business that serves hedge funds.
“We remain committed to our Corporate & Investment Bank and our international presence — we are unwavering in that,” said CEO Christian Sewing in a statement yesterday. “We are Europe’s alternative in the international financing and capital markets business. However, we must concentrate on what we truly do well.”
The reductions would lower the investment bank’s leverage exposure by €100 billion (RM468 billion), or 10 per cent, with most of the cuts to take place this year, said the bank.
It did not provide a specific number of job cuts, but a person with knowledge of the matter said the bank was aiming to axe 10,000 positions.
The bank said it would incur restructuring costs of €800 million this year, a figure it had flagged last month.
The bank’s shares, down more than 31 per cent this year, opened 0.4 per cent higher yesterday.
Deutsche Bank is also under pressure from credit ratings agencies.
Standard & Poor’s is expected to say by the end of the month whether it will cut Deutsche Bank’s rating after putting it on “credit watch” last month.