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Deutsche Bank to cut 35,000 jobs after 6 billion euros loss

Staff writer ▼ | October 29, 2015
Deutsche Bank announced details of the execution of its strategic plan Strategy 2020 and updated performance targets for 2018 and 2020.
Deutsche Bank
Strategy 2020   Deutsche Bank will exit 10 countries
Deutsche Bank would reduce its workforce by some 9,000 full-time jobs by 2020 and close operations in 10 countries.

About 6,000 external contractor positions will also be scrapped by and the bank plans to dispose of assets with a total cost base of approximately 4 billion euros and 20,000 jobs over the next 24 months. Those assets include its Postbank retail bank.

John Cryan, co-chief executive officer, said: "We have four strategic goals. First, to become simpler and more efficient by focusing on the markets, products, and clients where we are positioned to succeed, leading to greater client satisfaction and lower costs.

"Second, to become less risky by modernising our outdated and fragmented technology and withdrawing from higher-risk relationships and locations.

"Third, to become better capitalised, so that we are no longer playing catch-up with regulation and market expectations.

"Finally, to run Deutsche Bank with greater discipline and purpose based on delegation of responsibility, personal accountability, and a reward system which is aligned to good performance and conduct.”

"Sadly, this also means closing some of our branches and country locations, and reducing some of our front-office and infrastructure staff too. This is never an easy task, and we will not do so lightly. I promise that we will take great care in this process, moving forward together with our workers’ representatives."

The move comes after the bank reported third quarter 2015 net loss of EUR 6 billion after specific items. Before goodwill/intangibles impairment, costs were down by EUR 322 million FX adjusted, and litigation reserves increased by EUR 1 billion to EUR 4.8 billion.