German investment bank Deutsche Bank has refuted recent media reports suggesting that half of its planned 18,000 job cuts would be in Germany alone.
The financial services firm said that it is not planning any additional job cuts beyond those announced by the management board in July.
Deutsche Bank said: “We did not communicate any regional or divisional breakdown for these measures, and we will maintain this policy. As soon as decisions have been made regarding the exact number of jobs to be cut, they will first be discussed with those directly affected.
“The Management Board has reiterated that all areas of Deutsche Bank must make their contribution. There will be a substantial number of job cuts in Germany, as it is where by far the largest share of Deutsche Bank’s workforce is based. The total reduction of the workforce by 18,000 includes the job cuts already planned in connection with the Postbank integration.”
Deutsche Bank expects the restructuring to result in better and less volatile financial results
In July 2019, Deutsche Bank announced a new strategy which included a planned workforce reduction of 18,000 to 74,000 employees across the world by 2022.
The bank said that its decision on job cuts is aimed at a radical transformation to make its business model more profitable, and improve the shareholder returns for long-term growth.
The restructuring is expected to cost €7.4bn ($8.16bn) and increase revenues from €22.8bn ($25.14bn) in the core bank in 2018 to approximately €25bn ($27.57bn) in 2022.
The bank intends to downsize its investment banking operations to execute the restructuring strategy to reduce total costs by a quarter by 2022.
The investment banking division of the bank would focus on financing, advisory, currencies and fixed income to grow activity in credit and foreign exchange products.
Furthermore, the bank intends to maintain equity and macro research capacity along with a targeted equity sales force to continue offering strategic advice to corporate clients.
