Deutsche Bank considers 8,000 job cuts

FRANKFURT • Deutsche Bank AG is considering cutting as many as 8,000 jobs in addition to selling a consumer-banking unit, which would shrink the total workforce almost 25 per cent, according to a person familiar with the matter.

The new cuts would probably mostly affect administrative and technology jobs, although some client-facing positions may be eliminated, said the person, who asked to remain anonymous because the plans are confidential.

A plan to divest Bonn-based Deutsche Postbank AG, which employs about 15,000, is still part of the strategy, the person said.

The new cuts would probably mostly affect administrative and technology jobs.

A final decision will be made next month, the person said.

Deutsche Bank, which runs Europe's biggest investment bank, employed 98,647 people at the end of June.

Mr Klaus Winker, a company spokesman, declined to comment on Monday.

Co-chief executive officer John Cryan, 54, who replaced Mr Anshu Jain in July, is pressing ahead with the bank's plan to bolster profitability by reducing expenses and cutting back businesses.

On his first day on the job, he pledged to sell the Postbank unit, as outlined in April, and tackle the company's "swollen" cost base and "antiquated and inadequate" technology.

"Given nothing has really happened to Deutsche Bank's staff levels on a net basis, Cryan will have to make some deeper cuts to show he is serious about actually cutting expenses," said Mr Jon Peace, an analyst at Nomura Holdings who has a neutral recommendation on Deutsche Bank.

While planned cuts foresaw the bank closing as many as 200 consumer-banking branches and exiting up to 10 countries, the company stopped short of saying how many jobs would be lost and where. Staff levels at the end of June are up 0.4 per cent from the end of 2013, according to the company's filings.

Deutsche Bank will probably close most or all of its investment bank's operations in Russia, said the source.

The lender, which operates one of the largest foreign securities firms in Russia, with more than 1,000 employees, is considering cutting about 100 jobs in the country after the economic slump undermined deal-making, people with knowledge of the plan said in June.


A version of this article appeared in the print edition of The Straits Times on September 16, 2015, with the headline 'Deutsche Bank considers 8,000 job cuts'. Subscribe