Deutsche Bank slashes over 7000 jobs in major shake-up
The bank said Thursday it would cut its workforce from 97,000 to "well below" 90,000 in order to achieve cost reduction targets.
"The number of full-time equivalent positions is expected to fall from just over 97,000 now to well below 90,000".
The reductions will reduce the investment bank's leverage exposure by 100 billion euros ($117 billion), or 10 percent, with most of the cuts to take place this year, the bank said.
The announcement came on the same day as the bank's annual general meeting, where newly appointed chief executive Christian Sewing tried to reassure investors that the bank is ready to do what it entails to be profitable.
In one particularly desperate cost-slashing move, Deutsche Bank recently shortened its paid "gardening" leave periods for departing bankers - a policy created to protect the bank's competitive information - to 30 days from as much as 90 days previously, The Post first reported last week.
Hans-Christoph Hirt of Hermes Investment Management, a Deutsche Bank shareholder, told Achleitner - who has presided over four CEO changes - he should be replaced and called for more "effective" leadership of the supervisory board. It's unclear how many of those had actually been cut, although the bank reportedly laid off 400 workers in the United States last month.
"We are Europe's alternative in the worldwide financing and capital markets business. However, we must concentrate on what we truly do well".
"There is no time to lose as the current returns for our shareholders are not acceptable", the 47-year-old told reporters at the time.
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With UK jobs in London, Birmingham and Bournemouth a Deutsche Bank spokesperson has confirmed that today's job cuts will affect "all regions", but no further details are expected before today's AGM.
Sewing had already signalled he was planning deep cuts at Deutsche's trouble-plagued investment banking arm, and shift the focus to more stable business activities such as retail banking, particularly in Europe.
Mr Achleitner is under fire for failing to reverse Deutsche's track record of underperformance in recent years, and today's capitulation is the start of Germany's biggest bank finally admitting defeat in its bid to join the elite of global investment banking.
The bank was a dominant Wall Street trading house until the 2008 financial crisis.
The cutbacks will mean Deutsche stepping back from several decades of global expansion in which the bank vied with Wall Street rivals such as Goldman Sachs and JPMorgan Chase.
Deutsche even reported a bigger-than-expected net loss of €735 million in 2017, which it blamed mainly on US President Donald Trump's corporate tax reform.
By early 2018, unimpressed investors had driven the bank's share price to below half its 2015 level, prompting supervisory board chairman Achleitner to look for a new top manager. The six largest banks in the USA gave about 8,000 employees their pink slips during the quarter, the biggest decrease in the banks' combined workforce in two years, according to Bloomberg.
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