Deutsche Bank to cut 3,500 jobs over next two years

Deutsche Bank to cut 3,500 jobs over next two years
Deutsche Bank branchGetty Images

Germany’s largest bank, Deutsche Bank, has said it is planning to slash 3,500 jobs worldwide by the end of next year.

It becomes the latest lender to cut back its workforce, with many financial institutions seeing a fall in deal-making activity after interest rates rose.

The company employs around 7,000 people in the UK, largely in London and Birmingham.

The bank has not confirmed whether the job cuts will affect the UK.

Deutsche Bank employs 90,000 staff around the world, and recently expanded its footprint in the UK by acquiring Numis, one of the UK’s leading investment banks.

Thursday’s announcement suggests most of the cuts will be non-client facing roles.

Chief executive Christian Sewing, who took charge in 2018, was tasked with turning around the lender’s fortunes by bolstering its retail division.

Staff have already endured cuts as the bank attempts to reassure investors by slimming down the business.

The industry has seen a fall in takeovers and share listings, which has dented revenues for many financial institutions.

Banks are usually mediators in big financial deals, and so stand to earn big fees from them.

A drop in deal activity has prompted many firms, including some in the City of London and on Wall Street, to cut their headcounts.

Citigroup and Goldman Sachs have shed posts, while Barclays – one of the UK’s largest lenders – cut 5,000 jobs worldwide last year, and is due to update investors later this month, with further job losses a possibility.

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Source: bbc.co.uk

By David Ryckman