Germany’s largest bank, Deutsche Bank, intends to reduce its workforce in the retail banking sector by approximately 2,000 employees this year. The decision, announced by CEO Christian Sewing at a conference in London on Wednesday, is part of a broader strategy to decrease costs and responds to declining profits. The bank also plans to close various branches.

According to Sewing, turning around the profitability of the retail personal banking in Germany is crucial. These cuts are in addition to the 3,500 support staff that were laid off last year. He confirmed that while the costs associated with these measures are already accounted for in the 2024 financial plans, they are to be implemented now.

Currently, Deutsche Bank has a global workforce of 90,000 individuals. A spokesperson for the bank confirmed that the decision to close branches aligns with the bank’s previously announced strategy and rules out the introduction of new cost-cutting programs.

In September, the bank announced plans to close 50 of its 400 local branches this year, along with more than 200 Postbank branches. The bank is increasingly focusing on digital banking services and intends to expand video and phone consultations for private customers.

Through these restructuring measures, the bank aims to improve its return on equity, setting a target of over 10% by 2025, up from 4.7% the previous year. However, the bank’s performance in 2024 fell short of expectations, with a pre-tax profit of €5.3 billion ($5.8 billion), a 7% decrease from the previous year.

Edited by: Louis Oelofse

Source: https://www.dw.com/en/deutsche-bank-to-slash-2-000-jobs/a-71980419?maca=en-rss-en-all-1573-rdf