Deutsche Bank says to slash 18,000 jobs by 2022

Germany’s biggest lender Deutsche Bank said Sunday it would cut 18,000 jobs by 2022, as the former leading light of the country’s financial sector looks to escape years of turmoil.

The slashing of around one in five of its workforce, to 74,000 employees, is an unprecedented round of departures for Deutsche.

The bank said the layoffs would reduce annual costs by six billion euros ($6.7 billion) over the same period.

“Today we have announced the most fundamental transformation of Deutsche Bank in decades,” chief executive Christian Sewing said, dubbing the scheme “a restart for Deutsche Bank”. The lender did not immediately make clear where the axe would fall.

But with executives looking to find synergies in the integration of subsidiary Postbank and central infrastructure roles, many jobs are likely to go in home country Germany.

The new round of job cuts comes on top of some 6,000 already carried out over the past yer.

Bosses expect the restructuring plan to sap second-quarter results by some three billion euros this year, making for a net loss of 2.8 billion.

Over the whole year, Deutsche is likely to plunge back into the red after a brief flirtation with profitability in 2018. The bank does not plan to pay out dividends this year or next.

The restructuring could be a last chance for Deutsche after much-hyped merger talks with crosstown rival Commerzbank fell through earlier this year.

Negotiations collapsed despite the backing of the finance ministry in Berlin, which feared seeing a vital link in the financing of the country’s economy bought up from abroad.

Over the past four years, the firm’s market capitalisation has fallen by 75 percent, making it a potential target for takeovers by bigger fish.

 

Deutsche Bank says to slash 18,000 jobs by 2022

Germanys biggest lender Deutsche Bank said Sunday it would cut 18,000 jobs by 2022, as the former leading light of the countrys financial sector looks to escape years of turmoil. The slashing of around one in five of its workforce, to 74,000 employees, is an unprecedented round of departures for Deutsche. The bank said the layoffs would reduce annual costs by six billion euros ($6.7 billion) over the same period. Today we have announced the most fundamental transformation of Deutsche Bank in decades, chief executive Christian Sewing said, dubbing the scheme a restart for Deutsche Bank. The lender did not immediately make clear where the axe would fall. But with executives looking to find synergies in the integration of subsidiary Postbank and central infrastructure roles, many jobs are likely to go in home country Germany. The new round of job cuts comes on top of some 6,000 already carried out over the past yer. Bosses expect the restructuring plan to sap second-quarter results by some three billion euros this year, making for a net loss of 2.8 billion. Over the whole year, Deutsche is likely to plunge back into the red after a brief flirtation with profitability in 2018. The bank does not plan to pay out dividends this year or next. The restructuring could be a last chance for Deutsche after much-hyped merger talks with crosstown rival Commerzbank fell through earlier this year. Negotiations collapsed despite the backing of the finance ministry in Berlin, which feared seeing a vital link in the financing of the countrys economy bought up from abroad. Over the past four years, the firms market capitalisation has fallen by 75 percent, making it a potential target for takeovers by bigger fish.