Deutsche Bank to cut 3,500 jobs after drop in 2023 profit
The bank said the reduction in the number of positions would mostly be for jobs that don't involve directly dealing with customers.
The bank said it would seek to streamline its marketing network and computer systems and software as it seeks to cut costs. / Photo: AFP Archive
Germany's biggest lender Deutsche Bank has announced plans to slash 3,500 jobs as part of a major cost-cutting drive after its net profit fell in 2023.
The group reported a net profit attributable to shareholders of 4.2 billion euros ($4.5 billion), a 16-percent drop on the year before when profits were boosted by a one-off tax benefit.
Costs related to the company's savings and efficiency programme - first announced in 2019 - also weighed on net profit, with Deutsche spending 566 million euros ($611 million) on restructuring and severance expenses.
Revenues, however, jumped six percent year-on-year to 28.9 billion euros ($31.20 billion) thanks to the European Central Bank's higher interest rates.
Chief executive Christian Sewing in a statement praised the bank's performance in "an uncertain environment" and highlighted that Deutsche had achieved a pre-tax profit of nearly 5.7 billion euros ($6.16 billion), the highest in 16 years.
"Cost discipline remains a high priority," he added in a message to Deutsche staff, as the lender presses ahead with a 2.5-billion-euro ($2.70 billion) efficiency push aimed at improving profitability.
As part of those efforts, Deutsche said it plans to cut arou nd 3,500 jobs over the next two years, "mainly in non-client-facing areas".
The group expects to spend almost 400 million euros ($432 million) on restructuring costs in 2024, including further severance packages, chief financial officer James von Moltke said in a press conference.
The bank employed around 90,000 people globally at the end of last year.
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