Due to the heavy losses, the Deutsche Bank is considering to remove 15,000-20,000 employees of its employees worldwide. According to media reports, equity trading and research business have a large layoff plan. It will take more than a year. Reports of local German news agency stated that a discussion on the restructuring plan at Deutsche Bank was organized, but the final decision was delayed.
Deutsche Bank CEO Christian Sewing is trying to convince investors that they can transform most of Germany’s banks. Deutsche Bank’s stock reached the lowest level this month. At the beginning of this month, Deutsche’s supervisory board had agreed that large scale reduction in the equity and rate trading business in the US was needed.
Deutsche Bank’s supervisory committee will now gather on July 7 to address a major restructuring that may occur in as many as 20,000 job cuts, four people with awareness of the matter stated in the German news channels. The bank said it was working on measures to stimulate its conversion so as to increase its sustainable profitability. “We will refresh all stakeholders if and when needed,” the bank said.
Ranked as one of the most powerful banks in the world’s financial policy, Deutsche has been plagued by rating downgrades, multi-billion dollar fines, and management upheavals, with investment banking often the offender even though it produces about half of Deutsche Bank’s earnings. The bank, which had the equivalent of 91,463 employees worldwide at the end of the first quarter, has recently declared their plans to cut headcount to “well below” 90,000. After several years of losing to speed up with global leaders Wall Street’s big hitters such as JP Morgan and Goldman Sachs, Deutsche Bank is being forced to withdraw from riskier investment banking and concentrate its work on mainstream businesses.
The plan of removing people from the jobs, which could be declared next week, calls for the possible elimination of up to 20,000 jobs globally and mostly closing entire divisions of the company’s ailing Wall Street transactions, according to people notified on the matter. Deutsche Bank also is likely to declare the closing of large parts of its struggling German retail-banking market.