Business World

Sunday 19 August 2018

Deutsche to axe over 7,000 staff to cut costs

Deutsche Bank is slashing more than 7,000 jobs to cut costs and restore profitability, while keeping its international reach as its new CEO seeks to reassure investors and clients. Photo: PA
Deutsche Bank is slashing more than 7,000 jobs to cut costs and restore profitability, while keeping its international reach as its new CEO seeks to reassure investors and clients. Photo: PA

Tom Sims

Deutsche Bank is slashing more than 7,000 jobs to cut costs and restore profitability, while keeping its international reach as its new CEO seeks to reassure investors and clients.

Germany's biggest bank said global headcount would fall to well below 90,000 from 97,000, with a 25pc cut in equities sales and trading jobs, which are mainly in New York and London and where it has been losing ground to US rivals.

The bank employs around 650 in Ireland, where staff process transactions for global clients.

Deutsche Bank did not give a specific number, but a source told Reuters ahead of the lender's AGM yesterday that it was aiming to axe 10,000 positions.

Christian Sewing, who became CEO in an abrupt management reshuffle last month, said the bank was committed to its international presence, fleshing out his plan to scale back its global investment bank and refocus on Europe and its home market after three consecutive years of losses.

Last month, the bank flagged cuts to US bond trading, equities, and its business serving hedge funds.

Deutsche Bank has already dismissed 600 investment bankers over the past seven weeks and will cut spending by €1bn by the end of 2019 in its investment bank.

"This reduction is already fully under way and, so far, due to the considered way we've handled this, we have not seen any meaningful revenue attrition," Mr Sewing said.

Mr Sewing said that Deutsche Bank's position as a competitor to the Wall Street banking heavyweights such as Goldman Sachs and Bank of America remained an important focus. (Reuters)

Irish Independent

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