Deutsche Bank To Cut 18,000 Jobs
Deutsche Bank (DB) said Sunday that it will cut 18,000 jobs over three years as part of a reorganisation of the bank. It will exit its Equities Sales & Trading business, while retaining a focused equity capital markets operation.
The German bank expects to take about 7.4 billion euros of restructuring charges by the end of 2022, and expects to report a net loss of 2.8 billion euros in the second quarter of 2019.
The bank said it will not pay common equity dividends for the financial years 2019 and 2020. The announced measures are in the longer term expected to free up capital of 5 billion euros to be returned to shareholders through share buybacks and dividends starting in 2022.
The Supervisory Board of the German bank has changed the leadership structure of the bank starting August 1. The Management Board will comprise central and regional functions. It will be responsible for the strategy of the bank. Christiana Riley, Bernd Leukert and Stefan Simon have been appointed new board members.
The reorganisation of the German bank follows the failure of merger talks with Commerzbank in April.
Deutsche Bank said today that it will reduce about 18,000 jobs to around 74,000 employees by 2022 and expects to reduce adjusted costs by about 6 billion euros to 17 billion euros in 2022.
The bank is committed to investing a further 4 billion euros in improving controls by 2022. The bank will combine its Risk, Compliance and Anti-Financial Crime functions to strengthen processes and controls while also increasing efficiency. The bank intends to invest 13 billion euros in technology by 2022.
Deutsche Bank expects to report a net loss of 2.8 billion euros, and adjusted net profit of 120 million euros for the second quarter 2019. The bank plans to release second quarter results on 24 July 2019.
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