Deutsche Bank unveils transformation plans cutting 18,000 jobs

Deutsche Bank unveils transformation plans cutting 18,000 jobs

Deutsche Bank (ETR:DBK) has announced plans to radically transform its business model in order to increase profitability, improve shareholder returns and drive long-term growth.

In order to achieve this transformation, Deutsche Bank said that it will be radically downsizing its investment bank.

It also aims to execute plans by cutting total costs by roughly €6 billion to €17 billion by 2022, reducing costs by a quarter of the current cost base.

Deutsche Bank also said that the restructuring actions will include a reduction of its workforce by roughly 18,000 full-time equivalent employees.

It will create a fourth business division called the Corporate Bank which will include the Global Transaction Bank and the German commercial banking business.

“Today we have announced the most fundamental transformation of Deutsche Bank in decades. We are tackling what is necessary to unleash our true potential: our business model, costs, capital and the management team,” Christian Sewing, Chief Executive Officer of Deutsche Bank, said in a statement.

“In refocusing the bank around our clients, we are returning to our roots and to what once made us one of the leading banks in the world. We remain committed to our global network and will help companies to grow and provide private and institutional clients with the best solutions and advice for their respective needs – in Germany, Europe and around the globe,” Christian Sewing continued.

“This fundamental transformation is the right response to the major changes and challenges in the financial industry. Deutsche Bank has been through a difficult period over the past decade, but with this new strategy in place we now have every reason to look forward with confidence and optimism,” Paul Achleitner, Chairman of the Supervisory Board of Deutsche Bank, added.

Earlier this year, Deutsche Bank and Commerzbank (ETR:CBK) abandoned talks of a potential merger amid shareholder concerns over the complexities of the proposed move.

Had the merger gone ahead, it would have created Europe’s fourth largest banking institution.

Shares in Deutsche Bank AG (ETR:DBK) were trading at -0.084% as of 11:25 CEST.