Big changes continue to happen at Deutsche Bank. Recently, reports have surfaced that the company is planning to cut as much as 23,000 jobs. This follows after Deutsche Bank Co-Chief Executive Officer John Cryan sent an email to employees back in July where he stated the need to “narrow the scope” of the company’s activities. Moreover, he made it no secret that he has no problem closing down business with “poor prospects or business lines.”
John Cryan actually just took on the role of co-CEO last July, alongside Jürgen Fitschen. Meanwhile, Fitschen is expected to step down from his role on May 19, 2016 while his former co-CEO, Anshu Jain, has already stepped down from his role and is now a consultant for Deutsche Bank until January 16. When Fitschen exits, Cryan will become the Deutsche Bank’s sole CEO.
In Deutsche Bank’s Strategy 2015+, it has been stated that the company will continuously work in pursuing “disciplined cost management,” which also means “eliminating duplication and organizational complexity.” Moreover, this strategy is also in line with the company’s bigger picture, better known as Strategy 2020.
Meanwhile, Reuters reports that the jobs affected by the upcoming layoffs are those in Deutsche Bank’s technology and back office operations. After layoffs, back-office operations are expected to be pooled together in central locations in Frankfurt, New York and London. At the same time, layoffs will also take place a result of the spinning off of the company’s PostBank division, which currently has about 15,000 positions.
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Once the job cuts are done, the company will reportedly have just around 75,000 full-time positions.