Deutsche Bank Stock: 2,000 Jobs Cut in Efficiency Drive

Deutsche Bank has announced plans to eliminate approximately 2,000 jobs during the current fiscal year as part of its ongoing efficiency strategy. CEO Christian Sewing revealed these measures at a Morgan Stanley conference, adding that a "significant number" of branch locations will also be affected. The financial institution, which employs around 90,000 people globally, has already fully allocated funds for this workforce reduction in its financial planning. A company spokesperson emphasized that these cuts represent a continuation of previously announced optimization initiatives rather than a new cost-cutting program. The reductions will impact both retail branches and back-office operations where customer-related business processes are handled. Currently, Deutsche Bank operates about 380 proprietary branches alongside 470 Postbank locations throughout Germany.

"Deutsche Bank 3.0" Aims Higher Returns

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In late January, Sewing introduced a transformation program titled "Deutsche Bank 3.0" designed to streamline hierarchies and leverage artificial intelligence to optimize operational costs. The CEO is targeting a return on equity exceeding 10 percent by 2025-a substantial improvement from the previous year's 4.7 percent. This ambitious goal comes after the bank reported pre-tax profits of approximately €5.3 billion for 2023, representing a 7 percent decrease from the prior year and falling short of market expectations. The bank is increasingly shifting toward digital channels, having announced last September its intention to serve private customers more extensively via video and telephone consultations while reducing its physical footprint.