Deutsche Bank is considering cutting up to 20,000 jobs from its global equities division. (Image via Yahoo Finance)

Deutsche Bank Plans Up to 20,000 Job Cuts

Kinanty Nadia Putri
Market & Investment
Foreign Exchange & Interest Rate
Jun 29, 2019
2779
The German multinational investment bank Deutsche Bank is considering to cut between 15,000 to 20,000 jobs which equates to more than one in six full-time positions globally. As reported, this is a part of chief executive Christian Sewing’s strategy to shrink dramatically the divisions in the bank.

Earlier this week, the proposal of the potential jobs cuts was presented to the members of Deutsche’s supervisory board and regulators but hasn’t met with the final decision.

Last year, the bank has also cut about 7,000 jobs. If this year’s plan is passed, the headcount will reduce roughly half of all investment banking jobs at Deutsche. Although it’s still unclear if the cuts will also affect other divisions in the bank.

However, the bank declined to comment on any of the potential job cuts, saying that it’s working to find some measures to accelerate its transformation in order to improve its sustainable profitability. All the stakeholders will be updated when required, it added.

For years, the investment bank has been facing a poor performance. The plan of jobs cuts is said to be Sewing’s seriousness to improve its performance. In addition, Sewing and executives are also set to focus on renewing transaction banking and private wealth management to find new sources of revenue.

According to Financial Times, the poor performance of the bank has driven down its share price to the lowest level in its 149-year history, which closed at €6.78 on Friday.

Source: https://www.ft.com/content/710323e0-99c1-11e9-9573-ee5cbb98ed36

DeutscheBank , Germany , Finance