The company’s strategy to reduce costs and streamline operations may put close to 23,000 jobs at risk, reported Reuters, citing sources.
The job cuts will be achieved through layoffs in administrative and technology divisions and by divesting its consumer bank unit Deutsche Postbank.
The plans to offload Deutsche Postbank, which has 15,000 employees, were announced in April this year.
It plans to divest through a trade sale or by issuing shares to the public, reported Bloomberg.
The layoffs will reduce Deutsche Bank’s workforce from the current 98,000 to around 75,000.
A shareholder in Deutsche Bank, KBC Groep’s official Dirk Sebrechts was quoted by Bloomberg as saying: "The question for Deutsche Bank is whether they can pull this off.
"Whatever they do is going to have to be pretty convincing since the last strategy was a bit of a disappointment."
Deutsche Bank’s new CEO John Cryan, who took charge in July, will have to quickly make changes to the strategy and reduce costs in order to reduce the bank’s regulatory capital requirements and avoid increasing new equity capital, Reuters reported.
Earlier in May, Deutsche Bank announced plans to sell 13.84% of its share in Malaysia’s investment bank K&N Kenanga Holdings.
Deutsche Bank had acquired a strategic stake in the Malaysian bank when it bought 30% of its shares from John Hancock International Holdings.
Image: Deutsche Bank in Berlin, Germany. Photo: courtesy of Bufi / Wikimedia Commons.
