Deutsche Bank to focus on Germany for job cutting scheme
Deutsche Bank is focusing on its home market in a wave of job cuts aimed at reducing expenses, according to Bloomberg sources.
The lender is relying on savings at retail units to lower its annual costs. It employs 41,700 people in Germany, out of a total of 91,700.
Deutsche Bank announced that it would be cutting 18,000 jobs in July, a key part of a new restructuring plan which has also seen the bank create a new technology division overseeing data, security and innovation.
According to the Bloomberg sources, it is becoming “increasingly clear” that cuts to the retail division at the bank will be on a large scale. Frank Strauss, former head of the business, left when the restructuring was announced.
Manfred Knof, the new head of the retail unit, is said to be investigating whether savings could be made by turning the bank’s second retail headquarters in Bonn into an outpost, and whether dissolving the division’s separate legal structure could cut on losses.
While Deutsche CEO Christian Sewing has previously stated that the announced cuts will happen by the end of 2021, the Bloomberg sources believe that a decision on the fate of the retail business will be made before the lender’s investor day in December.
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In a statement, Deutsche Bank reiterates that it does not plan additional job cuts. “We did not communicate any regional or divisional breakdown for these measures, and we will maintain this policy,” it reads. “As soon as decisions have been made regarding the exact number of jobs to be cut, they will first be discussed with those directly affected.
“The management board has reiterated that all areas of Deutsche Bank must make their contribution. There will be a substantial number of job cuts in Germany, as it is where by far the largest share of Deutsche Bank’s workforce is based. The total reduction of the workforce by 18,000 includes the job cuts already planned in connection with the Postbank integration.”