- Deutsche Bank plans to cut approximately 3,500 jobs over the next two years as part of its €2.5 billion operational efficiency program.
- The job cuts will primarily affect “non-client-facing areas” as the bank aims to streamline its business in Germany and reduce annual total operating costs to €20 billion by 2025.
- The optimization efforts will focus on infrastructure and technology, involving the decommissioning of certain applications, implementation of simplified workflows and automation, and a front-to-back process redesign.
- Deutsche Bank states that it made progress in its operational efficiency program in 2023, generating €350 million in savings during the year and accumulating total savings of €900 million since the program’s inception.
- In Q4 2023, the bank reported a pre-tax profit of €698 million, a 10% decrease compared to Q4 2022, attributed to the all-cash acquisition of investment bank Numis in October.
- Non-interest expenses increased by 6% to €21.7 billion, and non-operating costs rose from €474 million in 2022 to €1.1 billion in 2023.
- Despite challenges, Deutsche Bank achieved a 2% year-on-year rise in pre-tax profits and a 6% increase in revenues to €28.9 billion.
- Christian Sewing, CEO of Deutsche Bank, emphasizes the strength of the Global Hausbank strategy, citing the highest profit before tax in 16 years, growth exceeding targets, and a focus on cost discipline while investing in key areas.
- The bank’s strong capital generation enables it to accelerate distributions to shareholders, providing confidence in achieving 2025 targets.
Deutsche Bank to cut 3,500 roles over two years amid €2.5bn savings drive
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