Germany’s struggling Deutsche Bank said it will cut 18,000 jobs by 2022 in a restructuring it’s calling a radical transformation.
THE BANK HAS BEEN STRUGGLING SINCE MAY
The plan represents a major retreat from investment banking by Deutsche Bank, which for years had tried to compete as a major force on Wall Street. As part of the overhaul, the bank will scrap its global equities business, scale back its investment bank and also cut some of its fixed income operations, an area traditionally regarded as one of its strengths.
Chief Executive Officer Christian Sewing, who now aims to focus on the bank’s more stable revenue streams, said it was the most fundamental transformation of the bank in decades. “This is a restart,” he said. “We are creating a bank that will be more profitable, leaner, more innovative and more resilient,” he wrote to staff.
The CEO had flagged an extensive restructuring in May when he promised shareholders “tough cutbacks” to the investment bank. This followed Deutsche’s failure to agree a merger with rival Commerzbank.