Deutsche Bank Plans To Slash Over 7,000 Jobs

Deutsche Bank announced recently that plans are underway to realign its internal processes to bring down the operating costs that have hurt its profits for a long period of time. The bank intends to reduce its workforce from the current 97,000 workers to 90,000. Both permanent and casual workers will be affected.

For several years, the company’s revenues have been dwindling. The board of directors recently decided to make changes in its management team, which saw John Cryan being replaced with Christian Sewing. Also, Paul Achleitner, the Chairman of the supervisory board at the bank was soon expelled by the angry shareholders. During a meeting, the investors gave him a vote of no confidence for bringing down the embattled bank.

Cryan joined the bank in 2015 and has tried to bring the company on its level to compete with its rivals globally but things are not working out as expected. He slashed thousands of jobs and closed hundreds of bank branches but nothing significant was realized.

Currently, the bank’s focus is on its core clientele, the European market while at the same time reducing its dedication to the global markets including the US and Asia. The bank plans to review all its global business entities. The bank intends to concentrate on offering the corporate and investment products and services to realize its potential.

Three Years With No Profits

In February 2018, the Germany’s largest bank announced that for three consecutive years, the bank has been reporting falling revenues and sales. Most corporate companies are currently facing tough challenges including economic recession, political instabilities, rapid revolution of technology and innovative products, attracting and retaining workforce and much more.

Last year, President Donald Trump of the US made drastic changes on how the international companies should conduct their businesses in the country including the tax reforms. Though the US reduced corporate taxes last year, the changes were just a short-term relief for the bank as there are other problems facing the company such as huge operating costs.

Most companies have been forced to close down due to tough regulations.

Last year, Deutsche’s revenues fell 12% compared to the previous year. The last time the bank made some lucrative profits was in 2014 when it reported a profit of €1.2 billion.

In the Q1 of 2018, the bank again reported disappointing financial results that led to thousands of people being retrenched.

 

 

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