Germany’s biggest bank said it would cut 9,000 full-time jobs and 6,000 contractor roles. It is also planning to sell businesses employing 20,000 people over the next two years.

Deutsche Bank
Deutsche Bank

By 2018, “we expect to see the benefits of our hard work and potentially be in the midst of a powerful turn-around,” said John Cryan, co-chief executive.

Deutsche is trying to cut €3.8bn of annual costs as European banks struggle with sluggish economic growth in their home markets and stricter regulation.
Cuts in Germany

In times of low growth, slashing costs through job cuts is seen as a way to improve profits.

The company plans to spin off Postbank with a stock market listing and sell its 20% stake in China’s Hua Xia Bank.

Mr Cryan told a news conference that the bank faced “hard decisions” as it was restructured. “We must reduce Deutsche Bank’s complexity,” he added.

The bank said it would close businesses in Malta, Argentina, Chile, Mexico, Finland, Peru, Uruguay, Denmark, Norway, and New Zealand. Some branches in Germany would close as well, Mr Cryan said.

The loss was caused by more than €5.8bn of charges in writedowns and legal expenses at its investment bank and on assets it wants to sell, as well as higher litigation charges.

Of the 9,000 full-time job cuts, about 4,000 will take place in Germany.

The lender employed 98,000 people as of the end of last year, according to its annual report.

Source: BBC

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