Deutsche Bank Plans Significant Job Cuts in Retail Division
The German banking giant announces a reduction of approximately 2,000 positions as part of a strategy to improve profitability amidst declining earnings.
Deutsche Bank, the largest bank in Germany, has announced plans to eliminate around 2,000 jobs within its retail banking division in response to declining profits.
This decision was revealed by CEO Christian Sewing during a recent conference in London.
The layoffs are part of a broader organizational strategy aimed at reducing operational costs while addressing the ongoing profitability challenges faced by the bank.
Sewing stated that the retail personal banking sector in Germany requires significant transformation, emphasizing the necessity of profitability improvements.
The current workforce reduction follows a previous layoff of 3,500 support staff in the prior year as part of ongoing cost-cutting measures.
The restructuring initiatives, including the upcoming job cuts, have already been factored into Deutsche Bank's financial provisions for restructuring costs for 2024, according to Sewing, who confirmed the implementation of these layoffs would commence immediately.
Currently, Deutsche Bank employs approximately 90,000 individuals globally.
In addition to the job cuts, the bank plans to further reduce its branch network, aligning with a previously communicated strategy.
A bank spokesperson indicated that there will be no new cost-saving programs introduced at this stage.
In September of this year, Deutsche Bank announced its intention to close 50 of its 400 local branches, as well as more than 200 branches of its subsidiary, Postbank.
The bank is increasingly focusing on digital banking solutions, with initiatives to enhance video and phone consultations for its private clients.
Management aims for these restructuring efforts to yield a favorable impact on its return on equity, which targets to exceed 10% by 2025, up from 4.7% reported last year.
Notably, however, the bank's performance in 2024 has not met expectations, with a pre-tax profit of €5.3 billion ($5.8 billion), reflecting a 7% decrease compared to the previous year.
This decision was revealed by CEO Christian Sewing during a recent conference in London.
The layoffs are part of a broader organizational strategy aimed at reducing operational costs while addressing the ongoing profitability challenges faced by the bank.
Sewing stated that the retail personal banking sector in Germany requires significant transformation, emphasizing the necessity of profitability improvements.
The current workforce reduction follows a previous layoff of 3,500 support staff in the prior year as part of ongoing cost-cutting measures.
The restructuring initiatives, including the upcoming job cuts, have already been factored into Deutsche Bank's financial provisions for restructuring costs for 2024, according to Sewing, who confirmed the implementation of these layoffs would commence immediately.
Currently, Deutsche Bank employs approximately 90,000 individuals globally.
In addition to the job cuts, the bank plans to further reduce its branch network, aligning with a previously communicated strategy.
A bank spokesperson indicated that there will be no new cost-saving programs introduced at this stage.
In September of this year, Deutsche Bank announced its intention to close 50 of its 400 local branches, as well as more than 200 branches of its subsidiary, Postbank.
The bank is increasingly focusing on digital banking solutions, with initiatives to enhance video and phone consultations for its private clients.
Management aims for these restructuring efforts to yield a favorable impact on its return on equity, which targets to exceed 10% by 2025, up from 4.7% reported last year.
Notably, however, the bank's performance in 2024 has not met expectations, with a pre-tax profit of €5.3 billion ($5.8 billion), reflecting a 7% decrease compared to the previous year.
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