Deutsche Bank to cut 800 jobs after strong first quarter
Deutsche Bank has announced a new cost-saving initiative which involves reducing its workforce by 800 employees.
This comes after the bank reported a higher than anticipated increase in profit during the first quarter, a period of significant volatility for finance companies worldwide.
While many banks in the US and Switzerland required rescue during this time, Germany's largest bank managed to produce solid earnings. The turbulence in the financial sector has caused investors to panic and customers to withdraw deposits, and this continues to be a challenging time for the industry.
The decision to cut 800 jobs marks a reversal of the bank's recent trend of staff expansion.
When asked about the job cuts, Deutsche Bank's CEO Christian Sewing told reporters “We need to further speed up and that’s what we are doing.”
The job cuts will affect various areas of the bank but will mainly target senior positions that don't involve direct client interaction.
Executives stated that this is just one of several measures the bank is taking to reduce costs by an additional 500 million euros in the coming years. As of the end of the first quarter, Deutsche Bank had a total workforce of 86,712 employees.
Despite being caught up in market fears of a global banking crisis, Deutsche Bank reported 7.7 billion euros in revenues - the highest in a quarter since 2016 and the pre-tax profit of 1.9 billion euros .
The bank has also revealed a series of strategic adjustments that will help to refine the bank's focus.
Karl von Rohr will not be renewing his contract, which expires at the end of October. In addition, Christiana Riley, who currently serves as CEO for the Americas, has decided to take up a new position outside of Deutsche Bank and will resign her mandate at the end of the Annual General Meeting on May 17.
Claudio de Sanctis, who is currently Head of the International Private Bank (IPB), will move up to the Management Board and take on the responsibility of the Private Bank.