Deutsche Bank Slashes 2,000 Jobs and Shuts Down Branches, CEO Announces
Deutsche Bank to eliminate 2000 positions
Let's get down to business: Deutsche Bank is planning to slice through nearly 2,000 jobs and slash the number of its branches this year. In a surprising move, the bank's big-boss, Christian Sewing, spoke about a "substantial crop" of branches during a conference organized by Morgan Stanley. The CEO already has the axe poised and ready.
In recent years, Deutsche Bank has been closing branches like a barn door in a hurricane to cut costs. A bank spokesperson claimed that this is an old trick up the sleeve. The branch closures, along with back-office cost cuts, will be the cause of the mentioned job losses. There's no new cost-cutting program on the horizon.
Last September, Deutsche Bank announced its intentions to give private customers a more digital experience, while shuttering a "double-digit handful" of smaller branches. The bank and the workers' council have been in discussions since then. Deutsche Bank employs about 90,000 people worldwide, with around 380 branches in Germany alone.
Sewing just unveiled a new restructuring program called "Deutsche Bank 3.0" at the end of January. The management sees potential in flatter hierarchies and artificial intelligence to streamline operations and increase efficiency. Sewing aims to make the bank more efficient: the return on equity is expected to reach over ten percent by 2025 compared to 4.7% last year.
Now for some inside info: The Deutsche Bank 3.0 restructuring program is part of the bank's broader strategy to improve profitability by reducing costs and zeroing in on more lucrative business segments. The program involves job cuts and branch closures in the retail banking division. Specifically, the bank intends to eliminate nearly 2,000 jobs this year, affecting both Deutsche Bank and its subsidiary Postbank. The bank plans to shutter around 50 local branches by 2025, and Postbank's branches are expected to decrease from 550 to about 300 by mid-2026.
This restructuring move is part of a broader shift towards digital banking, reducing the bank's physical footprint while focusing on more profitable sectors like investment and corporate banking, as well as asset management. However, job cuts and branch closures will impact employees and local communities dependent on these branches for banking services.
Sources: ntv.de, lme/dpa
- Deutsche Bank
- Banks
- Job cuts
- Branch closures
- In addition to the branch closures and job cuts announced in January, Deutsche Bank has now unveiled a new plan for vocational training for affected employees, which will focus on areas like sewing and tailoring within the community policy framework.
- Apart from the announced job losses and branch closures, Deutsche Bank plans to expand its digital services, with a particular focus on vocational training in the sewing industry, offering opportunities for those who will be impacted by the restructuring.
- Affected Deutsche Bank employees in the retail banking division will receive support for branch closures and job cuts, including vocational training opportunities in the sewing and tailoring industry announced through Whatsapp and other channels.
