Deutsche Bank embarks on "thorough" layoff exercise
Deutsche Bank will cut its global workforce by over 7,000 jobs before the end of 2019.
This was announced during CEO Christian Sewing’s Annual General Meeting speech to shareholders on Thursday (May 24).
The company declined to comment on how many jobs from Asia will be affected in this latest exercise, saying that it will not be providing regional breakdowns.
Deutsche Bank ended the 2017 financial year with a loss of 735 million euros. Revenues fell 12% from 2016.
To reverse its fortunes, Sewing said the company will undertake “far more thorough” cost-cutting measures in the next 18 months.
“In 2017 our bank’s adjusted costs were 2.6 billion euros lower than in 2015. But as we can see from our cost/income ratio, we haven’t cut costs enough,” he said, adding that the organisation is aiming to reduce expenditure by at least 1.5 billion euros between its corporate and commercial divisions.
Restructuring is already underway in the Private and Commercial division, where HR has identified more than 3,300 work processes which can be automated. The division had already reduced 300 jobs in the past two years alone after automating what it called “the hundred most cost-intensive” processes.
Top management has not been spared as well, said Sewing. The Management Board has already been slimmed down by a quarter, with the two layers below it currently in the process of being thinned further.
“When we cut costs significantly, this will also lead to a reduction in jobs. The number of full-time equivalents will drop from its current level of over 97,000 to well below 90,000 by the end of 2019,” Sewing said.