Money & Banking

Deutsche Bank plans half its18,000 job cuts in Germany

Bloomberg October 8 | Updated on October 08, 2019 Published on October 08, 2019

Deutsche Bank plans to cut about half its planned 18,000 jobs in Germany as it relies on savings at the retail units to lower costs, according to people familiar with the matter.

The lender employed about 41,700 people in its home market at the end of last year, out of a total of 91,700. Outside Germany, London will also be hit especially hard, partly because of Brexit, while the US may see a lower share of front-office cuts once the bank has exited its equities trading business, the people said, asking not to be identified because talks are ongoing.

In early July, Chief Executive Officer Christian Sewing unveiled Deutsche Bank’s most radical restructuring in recent history, with job reductions a key piece of the plan. While Deutsche Bank has yet to detail the cuts to its retail bank – now its largest division by revenue – it is increasingly clear they will be big, too. Frank Strauss, the head of the business, left when the restructuring was announced in the summer because he did not support the plans.

“We do not communicate details of the planned job cuts on a regional or divisional level,” the bank said by e-mail. “We are communicating directly with our works council and our employees regarding their jobs and options available to them.”

The new head of the German retail unit, Manfred Knof, is currently scouring the business for cost savings. He is considering turning the unit’s second headquarters in Bonn into an outpost, and he may dissolve the retail unit’s separate legal structure. That could save Deutsche Bank hundreds of millions of euros in compensation and regulatory expense

A decision will be taken before the bank’s investor day in December. The change would need approval from financial regulators, who have so far indicated they take a positive view. They may not give their final verdict before next year.

Published on October 08, 2019
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