Deutsche Bank plan 7,000 job cuts
Despite having the title of Germany’s largest lender, Deutsche Bank have been left with little choice other than to cut their current employee number by 7,000. The bank currently employees around 97,000 people, but following an extensive review of their current model the reductions need to be made in the hope the business can return to profit.
An announcement today from chief executive Christian Sewing claimed: "We remain committed to our Corporate & Investment Bank and our international presence - we are unwavering in that.
"We are Europe's alternative in the international financing and capital markets business. However, we must concentrate on what we truly do well."
The announcement had an instant impact on trading, with Deutsche shares falling 4.8 per cent to €10.38, the lowest they’ve been since October 2016. The announcement may well have been motivated by results from this year’s first quarter, with profits falling 13 per cent.
Deutsche Bank have a large global employment base, boasting 66,000 people in Europe, 21,000 in Asia and a further 10,000 in North America. It isn’t yet clear where the cutbacks will be made but the restructuring costs will stand at €800m, further hampering this year’s results. It will be interesting to see if these changes can help Deutsche Bank climb back to profitability.