The German bank’s move to downsize comes due to falling profits. Deutsche Bank also plans to close several of its branches.
Germany’s largest bank, Deutsche Bank, plans to cut around 2,000 jobs in its retail banking division this year, the group’s chief executive, Christian Sewing, said at a conference in London on Wednesday.
The move to downsize comes amid falling profits and is part of the bank’s broader strategy to reduce costs. The bank also plans to close several of its branches.
“Where we have to turn around the ship from a profitability point of view is clearly in the retail personal bank in Germany,” Sewing said.
“We will take out almost another 2,000 people in the personal bank this year,” Sewing added, referring to Deutsche Bank and its subsidiary Postbank.
Deutsche Bank already reduced its workforce by laying off 3,500 support staff last year in an effort to cut costs.
Sewing said the latest cuts are “already provisioned in terms of restructuring costs” in the company’s 2024 books “but are executed now.”
The bank employs 90,000 people worldwide.
Deutsche Bank to trim branch network
A spokesperson for the bank confirmed that the decision to shut down branches was part of an earlier announced strategy. He added that no new savings programs are being introduced.
In September, Deutsche Bank announced the closure of 50 of its 400 local branches this year and over 200 branches in Postbank.
The bank has gradually been incorporating digital banking services and intends to increase video and phone consultations for private customers.
The bank expects the restructuring measures to improve its return on equity, targeting a figure of over 10% by 2025, up from 4.7% last year.
The bank’s performance in 2024 remained below expectations, with a pre-tax profit of €5.3 billion ($5.8 billion) — 7% lower than the previous year.
Edited by: Louis Oelofse
DW News
