Deutsche Bank to cut workforce by a quarter
(15 September 2015 – Germany) Germany’s largest bank, Deutsche Bank aims to cut about a quarter of its workforce according to reports.
Roughly 23,000 jobs are set to be axed, bringing the total number of employees down to approximately 75,000. The cuts are said to be concentrated in the bank’s technology and back office areas, as well as the PostBank division.
The workforce reduction comes as a part of reorganisation plans laid out by new Chief Executive, John Cryan who control of the bank in July, promising to cut costs.
Accoding to sources, Cryan presented details of the plan to members of the supervisory board at the weekend.
In April, the bank revealed restructuring plans, however co-chief executives Anshu Jain and Juergen Fitschen quit shortly afterwards, handing over its execution to Cryan.
"This is the first time ever that you had the feeling that somebody is talking straight," said one of the sources. "But the problem is he has to deliver soon."
Deutsche is mainly reviewing cuts to the parts of its technology and back office operations that process transactions and work orders for staff who deal with clients.
PostBank has approximately 15,000 positions, indicating to roughly 8,000 layoffs at Deutsche once the unit's spinoff is completed in 2016.
In an effort to lower the bank's regulatory capital requirements and avoid raising new equity capital, Cryan will speed up changes to strategy and cut the balance sheet to avoid big one-off charges.
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