Deutsche to cut 26000 staff
(3 November 2015 – Global) Deutsche Bank will close operations in 10 countries and reduce its workforce by around 26,000 people by 2018 as it seeks to improve returns.
The German bank will cut about 9000 jobs on a net basis, almost 10 per cent of the workforce it expects to have at the end of the year, and others will leave as part of assets that will be sold, Deutsche Bank said last week.
Countries affected by the closures include New Zealand, Mexico and Norway and move trading operations from Brazil to global and regional hubs.
The overall savings from the cuts and other measures is expected to be around €3.8 billion ($6.2 billion). The announcement comes following plans to scrap dividends for two years as it targets a common equity Tier 1 ratio of at least 12.5 per cent from the end of 2018.
"This is never an easy task, and we will not do so lightly," co-chief executive officer John Cryan said in a statement.
"I promise that we will take great care in this process."
Germany's biggest lender posted a loss of €6b for the third quarter as stricter capital requirements reduce the value of its investment bank and the firm set aside more money for legal costs.
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