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Deutsche Bank cuts 3,500 jobs in cost-reduction drive
https://www.whatjobs.com/news/world-news/deutsche-bank-cuts-3500-jobs-in-cost-reduction-drive
By Nithya Bose in Business News, posted February 4, 2024
Deutsche Bank has confirmed 3,500 job losses as part of its ongoing efforts to cut costs and streamline operations.
This decision continues the €2.5 billion cost-cutting strategy introduced in 2022, with the bank still aiming to achieve €1.6 billion in savings.
The job cuts will predominantly affect non-client-facing roles, particularly in the back-office sector.
Deutsche Bank seeks to enhance efficiency through operational simplification and automation.
The announcement did not specify how the cuts would impact its 7,000 employees in London.
This move comes as Deutsche Bank disclosed a 10 percent decrease in pre-tax profits for the fourth quarter.
The decline was attributed mainly to restructuring charges and a devaluation from its acquisition of UK stockbroker Numis.
The bank reported a slight two percent increase in full-year pre-tax profits to €5.7 billion, and its shares saw an almost 4 percent rise in early trading, buoyed by a positive revenue forecast.
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Deutsche Bank joins a list of major global financial institutions that have recently reduced their workforces.
Banks continue to shed jobs
Challenging market conditions affecting deal-making activities and consumers' shift towards digital banking are the leading causes.
Banks previously committed to maintaining workforce levels during the pandemic are now implementing job cuts.
Citibank announced it would eliminate 20,000 positions by the end of 2026 as part of its restructuring efforts.
Barclays, too, is cutting 5,000 jobs from its 84,000-strong workforce globally to improve profitability and satisfy shareholder expectations.
Furthermore, Lloyds Banking Group recently revealed plans to cut 1,600 jobs from its branch network.
The bank aims to lower expenses and encourage customers to use digital banking services.
This announcement followed a previous statement about eliminating nearly 3,000 middle-management positions.
It includes analysts and product managers as part of a broader corporate reorganisation.
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