Deutsche Bank Says It Will Cut Around 35,000 Jobs And Close Down In 10 Countries
Recently, Deutsche Bank had announced that it would need to lay off some 15,000 employees as part of its strategy to cut cost below EUR 22 billion and achieve savings of around EUR 3.8 billion by 2018.Advertisement
What is being hailed as “Strategy 2020” also details the need for the company close down its operations quickly in 10 countries.
Strategy 2020 means that 9,000 net full-time equivalent (FTE) positions will be terminated along 6,000 positions given to external contractors in the Global Technology and Operations department.
At the same time, Deutsche Bank also announced plans to lay off another 20,000 FTE position over next two years, bringing the total number of layoffs to 35,000. Meanwhile, the 10 countries where the company tends to make a full exit from include Argentina, Chile, Uruguay, Denmark, Finland, Mexico, Peru, Norway, New Zealand and Malta.
Recently appointed Deutsche Bank Co-Executive Officer John Cryan and the Management Board have been working on a plan to stabilize the bank and make a turn-around during the long-term since he was appointed to the role last July. Moreover, he says the end goal is to simply “build a better Deustche Bank.”
Deutsche Bank has had a tough quarter recently, reporting a net loss of EUR 6 billion Moreover, revenues had gone down by 7% to EUR 534 million. This is largely due to the EUR 649 million impairment on the company’s stake in Hua Xia Bank. Meanwhile, Deutsche Bank says it is expecting its restructuring and severance costs to total to anywhere between EUR 3 billion and EUR 3.5 billion. They also said that they expect to spend two-thirds of the said cost by 2016.
Inside the company, Deutsche Bank says it has already terminated its Group Executive Coffee. At the same time, it will also drastically reduce its Management Board committee from 16 to six.