- Bank said it is cutting workforce from 97,000 to ‘well below’ 90,000
- Headcount in stocks trading business will be reduced by about 25 per cent
- Many of the trading and sales jobs being cut are in London or New York
- Deutsche Bank has struggled with high costs and troubles with regulators
Struggling City of London heavyweight Deutsche Bank has said it is slashing thousands of jobs as it restructures its global banking business to put more focus on its European base.
It said the cuts are already underway and will ultimately result in the headcount in its trading business being reduced by about 25 per cent.
A flag for Deutsche Bank flies outside the German bank’s New York offices on Wall Street
The bank employs approximately 8,500 staff in London.
Deutsche Bank has struggled with high costs and troubles with regulators over recent years.
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 will refocus on its European and German customer base and cut back on costlier, riskier operations where it does not hold a leading position in the market.
Sewing said the bank is still committed to its international investment banking operations but must ‘concentrate on what we truly do well.’
The new strategy means stepping back from decades of global expansion in which the bank sought to compete with Wall Street rivals such as Goldman Sachs and JPMorgan Chase.
Germany’s struggling Deutsche Bank says it’s slashing thousands of jobs as it reshapes its stocks trading business and tries to limit costs
Sewing replaced John Cryan in April with a mandate to accelerate the bank’s restructuring. It has suffered billions in losses from fines and penalties related to past misconduct.
Progress in cutting costs has remained elusive until now. Sewing on Thursday reiterated the bank’s goal to hold costs to €23billion this year and €22billion next year.
Board chairman Paul Achleitner will face disgruntled investors later on Thursday at the bank’s annual shareholder meeting.
The bank’s share price has been slipping of late and it paid only a small dividend of 11 euro cents per share last year.