Germany-based retail banking company Deutsche Bank is set to axe around 3,500 jobs in the coming two years, the bank announced as part of its full-year 2023 financial results disclosure.
Deutsche has decided to reduce around 3,500 roles, primarily in non-client-facing areas, as part of its €2.5bn operational efficiency programme for 2023.
By the year-end 2023, the German lender recorded savings totalling €1.3bn from the measures related to the operational efficiency programme.
The bank aims to realise the remaining €1.6bn through de-commissioning, operating model improvements, optimisation of its platform in Germany, and front-to-back process redesign.
Deutsche Bank chief financial officer James von Moltke said: “We have reached an inflection point on key dimensions. We have delivered growth and capital strength while absorbing the twin impacts of continued investments and increased regulatory capital requirements.
“Looking ahead, with those impacts increasingly behind us, we are well positioned to accelerate our progress toward our 2025 goals.”
In June last year, Deutsche Bank was reported as planning to cut 10% of its workforce in its German retail business unit over the coming few years, as part of its cost savings strategy.
Deutsche Bank has 90,000 employees across the world and has recently expanded its footprint in the UK by acquiring institutional stockbroker and corporate advisor Numis, for £410m.
The currently announced job cuts represent less than 4% of the bank’s global workforce.
The German lender reported a net profit of €4.2bn for the full year ended 31 December 2024, a 16% decrease compared to €5.02bn for the full year 2022.
According to BBC, banks usually serve as mediators in big financial deals and earn big fees from them. The industry has seen a fall in mergers and acquisitions and share listings.
The decline in deal activity has led many companies, including some in the City of London and on Wall Street, to reduce their headcounts.
Recently, Citigroup and Goldman Sachs announced job cuts, and Barclays confirmed that it has axed around 5,000 jobs from its global workforce of 84,000, last year.
