New Telegraph

Report: Deutsche Bank Plans to Cut 3,500 Jobs

Deutsche Bank branch Berlin. Germany 27.03.2023. Photo: Krisztian Bocsi

Deutsche Bank plans to cut 3,500 jobs over the coming years as Chief Executive Officer, Christian Sewing, seeks to make good on a pledge to lift profitability and return more money to shareholders, Bloomberg said in a report Thursday. The reductions, most of them back-office roles, are part of cost savings that the Frankfurt-based bank had previously announced.

The lender detailed the cuts on Thursday as it raised its mid-term revenue target and said it will return €1.6 billion to investors in the first half of this year, including through a €675 million share buyback. Sewing is stepping up efforts to lift a share price that has largely treaded water since he took over, as he seeks to play a more active role in banking consolidation in Europe.

After benefiting from rising interest rates over the past year, he now has to contend with a slowdown in trading, high inflation and investments to fix flawed controls. The bank’s fourth-quarter results illustrated that challenge. While revenue rose about five per cent from a year earlier, it fell short of analysts’ estimates because of a weaker-than- expected performance at the giant fixed-income desk, where trading income rose about one per cent.

The German lender still beat the average drop of 9.7 per cent across Wall Street. Deutsche Bank rose 1.1 per cent at 9:10 a.m in Frankfurt trading. The stock has gained about seven per cent since Sewing was named CEO in 2018, though it’s more than doubled from the lows reached almost four years ago.

Read Previous

Adidas Says It Plans to Sell Remaining Yeezy Stock

Read Next

ECOWAS: Divided We Fall