DEUTSCHE Bank has said it will cut 18,000 jobs by 2022 to in a bid to turn around the struggling lender.
The move is part of a 7.4billion euro (£6.64billion) designed to turn around Germany’s flagship bank.
1 Deutsche Bank has said it will cut 18,000 jobs over the next three yearsCredit: AP:Associated Press
It is yet to announce exactly what jobs will be affected but it is believed that most of the losses will affect employees based in London and New York. It will cut the workforce by a fifth.
The investment bank, which employs more than 91,500 worldwide, has over 8,000 staff in the UK.
The bank has also announced that it will scrap its global equities business and scale back its investment bank.
It expects a 2.8 billion euro ($3.1 billion) net loss in the second quarter as a result of the restructure.
Deutsche said that it would also cut its fixed income operations, especially its rates business.
It will also create a new unit to “wind-down” unwanted assets, with a value of 74billion euros of risk-weighted assets.
The pledge came after Deutsche failed to agree a merger with rival Commerzbank.
The German government had backed the merger and believed it would create a national champion in the banking industry, but both firms backed out after agreeing it would be too risky.
Reports ahead of the decision had suggested that Deutsche Bank could cut as many as 20,000 jobs.
The bank had previously suggested it would reduce headcount to 74,000 employees by 2022.
The lender’s supervisory board met on earlier today to agree the proposed changes, one of the biggest shake-ups in the industry since the financial crisis.
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Christian Sewing, Chief Executive Officer of Deutsche Bank, said that the lender “remains committed to [its] global network”.
He added: “We are tackling what is necessary to unleash our true potential: our business model, costs, capital and the management team.
“We are building on our strengths. This is a restart for Deutsche Bank – for the long-term benefit of our clients, employees, investors and society.”
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