Tue, Jul 02, 2019 - Page 10 News List

Deutsche Bank may slash up to 20,000 jobs as it revamps

Bloomberg

Deutsche Bank AG is considering slashing headcount by more than a fifth in what is shaping up to be its biggest makeover in years, two people familiar with the matter said.

CEO Christian Sewing might decide to cut as many as 20,000 jobs when he presents his latest restructuring plan, perhaps as early as this week, the people said, asking not to be identified as the matter is private.

The decision has not been formally adopted yet and the number might change, they said.

“Deutsche Bank is working on measures to accelerate its transformation so as to improve its sustainable profitability,” a spokeswoman said by e-mail. “We will update all stakeholders if and when required.”

Sewing announced at the lender’s annual general meeting in May he was working on “tough” cutbacks after he decided to walk away from merger talks with domestic rival Commerzbank AG in April.

His previous turnaround plan, unveiled shortly after he took over as CEO a little more than a year ago, has failed to restore the bank to a healthy level of profitability.

Deutsche Bank had 91,500 staff at the end of the first quarter, down from 95,400 when Sewing took over.

Deutsche Bank shares gained as much as 3.5 percent in Frankfurt trading amid a broader stock rally in Europe and were up 3.4 percent at 7 euros as of 9:13am. The Euro Stoxx 600 index was up 1.1 percent.

The bank expects to make a formal announcement no later than Monday next week, one person said.

The Wall Street Journal first reported on the plan to cut as many as 20,000 jobs.

The sweeping restructuring is likely to hit Deutsche Bank’s investment banking division the hardest, particularly its US operations as well as trading equities and interest rate derivatives, people familiar have said.

The bank is planning to cut its global equities headcount by 50 percent, they have said.

Reuters on Sunday reported that the lender is looking to hire 300 people globally for its wealth management arm by 2021.

It plans to hire those managers across Europe, America and emerging markets, according to the report, which cited global head of wealth management Fabrizio Campelli.

Deutsche Bank would also make changes to the management board, with investment banking head Garth Ritchie, chief regulatory officer Sylvie Matherat and chief financial officer James von Moltke all potentially leaving, people familiar with the matter have said.

Sewing is likely to take over formal oversight of the investment bank at the management board level, they said.

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