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.


Related News:



Most liked

LeBron Scores 46, Cavaliers Beat Celtics 109-99 To Force Game 7
That season, Boston knocked out James and the Cavs in six games in the second round, and James left the Cavs for the Miami Heat. George Hill added 20 points, while Jeff Green and Larry Nance came off the bench to deliver 14 and 10, respectively.

Unusual wolf-like animal killed in Montana puzzles wildlife officials
But others think it is a coywolf (a coyote wolf hybrid), or perhaps a wolfdog bred in captivity and later released into the wild. They are now relying on DNA tests to determine exactly what the species is.

US Reaches Deal to Keep Chinese Telecom ZTE in Business: Congressional Aide
The president's efforts to negotiate a deal with ZTE have been met with opposition from Democrats, as well as some Republicans. While such an agreement is viewed as a way to advance trade negotiations with China , lawmakers could be resistant to a deal.

Iran presses European Union on measures to salvage nuclear deal
Plan B has just started to be figured out". "European banks should safeguard trade with the Islamic Republic", Khamenei said. They have said that as long as Tehran meets its commitments, they will stick to the deal.

Nvidia Shield updates to Android TV Oreo 8.0 with custom menus
As we reported earlier today, Honor has started pushing the Android 8.0 Oreo update for the budget Honor 7X in India. The "Play Next" option lets you add content so you can restart watching if you don't finish a show, movie, or game.

National Hurricane Center: Subtropical Storm Alberto forms in western Caribbean
Forecasters expected Alberto to intensify to a tropical storm Saturday morning, but do not anticipate it to become a hurricane. Storms Friday morning should not be severe, but some heavy rainfall and wind gusts up to 45 miles per hour can be expected.

Salah: It would be a 'dream' to win Champions League
No team has ever won football's Champions League and basketball's EuroLeague in the same season, but Real Madrid have a chance to do exactly that this weekend.

Hawaii lava erupting volcano hurt local resident
Twenty-two fissures have opened up on the Big Island since May 3, and lava has covered at least 325 acres and 41 structures. Gabor Kovacs, visiting from Hungary, watches as lava flows into the ocean, generating plumes of steam, near Pahoa, Hawaii .

Fulham boss ready to use ‘important weapon’ against Aston Villa
Villa are hoping to agree a new deal with Terry, to keep him at the club for the long-term. It has been suggested he would want to have a clause included saying he would not...

Shakhtar midfielder Fred: Man Utd have made very strong bid
Manchester United are set to make Brazilian midfielder Fred their first signing of the summer, according to reports . During his time with Shakhtar, Fred has won ten trophies including three league titles and three domestic cups.

HTC U12+ brings a dual camera, HDR10 display and Snapdragon 845
The front camera contains two 8-megapixel lenses with an 84° field of view wide angle and realtime Bokeh mode as well. Then there is the squeeze feature from a year ago that lets the user launch voice assistant, Edge Launcher, and more.

Ayesha Curry, Rockets fan argue after Game 5
In a video shot Thursday night in Houston , you can hear the fan talking all kinds of smack while holding a cigarette. She's all bitter and sour. "Look at her! She's being all rude", before he walked into her direction.

RUMOR: Donald Glover In 'Informal' Talks to Play Black Panther 2's Villain
Let us know in the comments! Now that she's been recognized by The Academy as a nominee, her acting career is bound to continue. Ross and members of the Dora Milaje, Wakandan special forces, to prevent Wakanda from being dragged into a world war.

Formula 1 Monaco Grand Prix preview
Ricciardo was third in Monaco past year , after taking pole and finishing second in 2016, and is aiming to take the final step on Sunday.

Camilla Parker Bowles Speaks Out On Royal Wedding
It's been reported that the promise of Smarties and Peppa Pig was also used to keep the children happy during the actual ceremony. Little Brian's face said it all! From the day, Alexi's highlight will always be Meghan's entrance into the chapel.