Deutsche Bank will cut 18,000 jobs as it shuts down most of Asia's loss-making equities business
- German multinational
Deutsche Bankis considering laying off 18,000 employees globally over the next three years.
- This will reduce the bank's workforce to 74,000.
- The investment bank is planning to shut down its equity business to overcome the $3.1 billion loss.
Investors cheered the decision as Deutsche Bank shares rose 2.5% on Friday after the announcement.
“Today we have announced the most fundamental transformation of Deutsche Bank in decades. We are tackling what is necessary to unleash our true potential,” Christian Sewing, Chief Executive Officer told ET.
These latest job cuts will account for one-fifth of the company’s workforce. While it yet unknown where these jobs will be retrenched, the bank is planning to shut its equity business to overcome the $3.1 billion loss in the second quarter. This came after failure in the bank’s merger with Commerzbank.
The investment bank’s London unit staffs nearly 8,000 employees, making it a feasible stock operation unit.
The bank will also spend nearly 4 billion euros by 2022 to revamp the business, and improve its finances. It will now focus on steady and revenue-generating business areas.
Last year, it has already slashed 6,000 jobs.
The German bank has been facing troubles for the last three years, as heavy penalties took a bite off its profits. The mounting fines it had to pay up has eroded its value too as share prices took a beating.
In 2017, the bank paid $7.2 billion to the Justice Department for stock trading with the people having unsteady credit.
The last few years have brought any good news for banking professionals across the world. As many as 32,000 jobs were cut last year in the financial services and banking sector, according to Barkow Consulting.
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