Deutsche Bank to cut 3,500 roles over two years amid €2.5bn savings drive
Frankfurt-headquartered Deutsche Bank expects to cut approximately 3,500 roles over the next two years as part of its ongoing €2.5 billion operational efficiency programme.
Deutsche Bank expects to cut around 3,500 jobs over the next two years
The German investment bank says the cuts will mainly apply to “non-client-facing areas” as it looks to streamline its business in Germany and lower its annual total operating cost to €20 billion by 2025. Deutsche Bank currently employs around 90,000 people worldwide.
This business optimisation – which will largely pertain to the bank’s infrastructure and technology – will include the de-commissioning of certain applications, the installation of “simplified workflows and automation” and a “front-to-back process redesign”.
Deutsche Bank says it made “further progress” in its operational efficiency programme during 2023 – part of its Global Hausbank strategy. It claims its actions over the year generated €350 million in savings, boosting its total savings made since the start of the programme to €900 million.
The bank reported a pre-tax profit of €698 million in Q4 2023 – down 10% on Q4 2022. It attributes this to its all-cash acquisition of investment bank Numis; a move it completed in October.
At the same time, its non-interest expenses are up 6% to €21.7 billion, with its non-operating costs shooting up from 2022’s €474 million to €1.1 billion last year. Despite this, Deutsche Bank still managed to achieve a 2% year-on-year rise in its pre-tax profits, while its revenues also grew 6% to €28.9 billion.
Speaking on the bank’s full-year performance for 2023, Christian Sewing, CEO of Deutsche Bank, says it “underlines the strength of our Global Hausbank strategy as we help our clients navigate an uncertain environment”.
“We have achieved our highest profit before tax in 16 years, delivered growth well ahead of target and maintained our focus on cost discipline while investing in key areas,” Sewing claims. “Our strong capital generation enables us to accelerate distributions to shareholders. This gives us firm confidence that we will deliver on our 2025 targets.”
