Deutsche Bank Confirms Thousands of Job Cuts

A sign for a pedestrians stand in front of the Deutsche Bank towers on the day of the annual meeting of the bank in Frankfurt Germany Thursday

Deutsche Bank, Germany's largest lender, is to cut more than 7,000 jobs globally, with its investment banking business in London likely to be hit.

Deutsche Bank announced today that it is the slashing "well over" 7,000 jobs-some say 10,000-of its current 97,000 employees, and its corporate and investment bank is expected to lose 25% of its employees, mostly, according to Associated Press, in London and NY. Sewing, who replaced former chief executive John Cryan in April, has said the bank will scale back its ambitions in the U.S. market and focus instead on Europe. The bulk of those jobs are in NY and London. The bank's share price has sagged and it paid only a small dividend of 11 euro cents per share previous year.

"However, we must concentrate on what we truly do well", said Christian Sewing, the newly appointed CEO of Deutsche Bank, in a statement. In April, it ousted CEO John Cryan, replacing him with Sewing, who has spent his entire career at the bank.

Sewing said the bank would cut spending by 1 billion euros ($1.17 billion) by the end of 2019 in its investment bank.

"We remain committed to our corporate and investment bank and our worldwide presence - we are unwavering in that", Sewing said in the statement.

A number of key executives have departed the bank since Sewing took over on April 9. Progress in cutting costs has remained elusive. Sewing on Thursday affirmed the bank's goal to hold costs to 23 billion euros this year and 22 billion next year.

New CEO of Deutsche Bank Christian Sewing looks on prior to the annual meeting of the bank in Frankfurt Germany Thursday
Deutsche Bank Confirms Thousands of Job Cuts

With the bank's demise now veering towards becoming a national embarrassment for Germany, protestors are currently camped outside the bank's calling on the bank to "get out of coal, weapons and tax havens", with a sign reading "Deutsche Bank: Ich keieg die Krise' which translates to, "I'm getting the crisis". Earnings in the first quarter of 120 million euros were sharply down from the year-earlier quarter.

At the meeting, the bank's chairman, Paul Achleitner, said that while Mr Cryan had "set the ball rolling" on reform, he had displayed "shortcomings in decision-making and implementation".

Hans-Christoph Hirt, head of shareholder adviser Hermes EOS at Hermes Investment Management, told Reuters on Wednesday he wanted to see a "credible strategy with achievable targets". "Therefore we must act, and we must act swiftly and forcefully".

The bank's troubles and the turmoil surrounding Cryan's departure have put pressure on Achleitner as well.

"The equities business is a very sensible area to focus the cuts on seeing as they haven't been achieving the return on capital they want there", Neil Smith, an analyst at Bankhaus Lampe who has a buy recommendation on Deutsche Bank shares, said by phone from Dusseldorf.

The announcements came just hours before the start of Deutsche's annual general meeting in Frankfurt, where management can expect a grilling from shareholders. In its equities sales and trading business, the bank said it was aiming to reduce headcount by about 25 per cent.

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