Deutsche Bank to cut 18,000 jobs as part of $8.3bn restructuring

Germany’s biggest lender Deutsche Bank is planning to cut 18,000 jobs in the next three years as part of its new round of restructuring, local reports say.

By 2022, the bank will have 74,000 full-time positions after 20% cutback of the workforce.

The company’s supervisory board met in Frankfurt on Sunday to discuss the restructuring which may cost $8.3 billion but will cut annual costs by $6.7 billion until 2022 by saving on salaries.

The bank’s loss-making corporate and investment banking division will be overhauled. The first sign of it came on Friday when the bank announced the departure of its division head Garth Ritchie.

The bank will stop the investment division’s stock-trading business and pull out of its global equities sales and trading business to raise profits.

The investment division has been facing trials and fines for various offenses including money laundering.

Economy Minister Peter Altmaier told Bild newspaper that Deutsche Bank is a player in the top league and it will remain so.

After the financial crisis a decade ago, the bank has been struggling to make profits under the new safety provisions imposed on banks.

Christian Sewing took over as chief executive last year with a promise to turn the bank around. At the annual general meeting, Sewing had assured investors of massive job cuts and transformation by raising profits and expanding potential areas for growth