Money & Banking

Deutsche Bank may cut up to 20,000 jobs in major revamp plan

Reuters FRANKFURT | Updated on June 29, 2019 Published on June 29, 2019

A file photo of Deutsche Bank headquarters pictured in Frankfurt, Germany.   -  REUTERS

The bank’s supervisory board to meet on July 7 to discuss extensive overhaul

Deutsche Bank's supervisory board will meet on July 7 to discuss a major restructuring that may result in as many as 20,000 job cuts, three people with knowledge of the matter said.

CEO Christian Sewing flagged an extensive overhaul last month when he promised shareholders “tough cutbacks” to the investment bank to turn the lender around after it botched an attempted merger with rival Commerzbank.

Read also: Deutsche Bank, Commerzbank merger talks fail

In addition to the job cuts, the bank is considering a trimmer management board, two of the people said. The investment bank would be represented on the board by Sewing rather than having a seat at the table, as is currently the case.

Veteran Garth Ritchie has been heading the investment bank, but a plan under discussion is to promote bankers Stefan Hoops and Mark Fedorcik to lead the division as co-heads, the people said. They would report to Sewing.

The third person described the plans as fluid, with many aspects still not decided.

Deutsche Bank declined to comment on the changes. Ritchie, Hoops and Fedorcik declined through a spokesman to comment.

The bank said it was working on measures to accelerate its transformation so as to improve its sustainable profitability. ”We will update all stakeholders if and when required,” the bank said.

Read more: Deutsche Bank faces FBI investigation for possible money laundering lapses

 

Published on June 29, 2019
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