Logo of Phnom Penh Post newspaper Phnom Penh Post - Deutsche Bank set to slash 18,000 jobs by 2022

Deutsche Bank set to slash 18,000 jobs by 2022

Content image - Phnom Penh Post
The headquarters of German Deutsche Bank in Frankfurt am Main, western Germany. AFP

Deutsche Bank set to slash 18,000 jobs by 2022

Germany's biggest lender Deutsche Bank said on Sunday it would cut 18,000 jobs by 2022, as the former leading light of the country’s financial sector looks to escape years of turmoil.

The slashing of around one in five of its workforce, to 74,000 employees, is an unprecedented round of departures for Deutsche.

The bank said the layoffs would reduce annual costs by €6 billion ($6.7 billion) over the same period.

“Today we have announced the most fundamental transformation of Deutsche Bank in decades,” CEO Christian Sewing said, dubbing the scheme “a restart for Deutsche Bank”.

The lender did not immediately make clear where the axe would fall.

But with executives looking to find synergies in the integration of subsidiary Postbank and central infrastructure roles, many jobs are likely to go in home country Germany.

The new round of job cuts comes on top of some 6,000 already carried out over the past year.

Bosses expect the restructuring plan to sap second-quarter results by some €3 billion this year, making for a net loss of €2.8 billion.

Over the whole year, Deutsche is likely to plunge back into the red after a brief flirtation with profitability last year.

The bank does not plan to pay out dividends this year or next.

Last chance?

The restructuring could be a last chance for Deutsche after much-hyped merger talks with crosstown rival Commerzbank fell through earlier this year.

Negotiations collapsed despite the backing of the finance ministry in Berlin, which feared seeing a vital link in the financing of the country’s economy bought up from abroad.

Over the past four years, the firm’s market capitalisation has fallen by 75 per cent, making it a potential target for takeovers by bigger fish.

As markets closed on Friday, Deutsche was worth €15 billion, placing it firmly at the back of the pack in a European industry dominated by the likes of HSBC (€165 billion), Spain’s Banco Santander (€69 billion) and France’s BNP Paribas (€54 billion).

“Deutsche plays in the first division, and should lay the foundations for things to stay that way” over the weekend, urged economy minister Peter Altmaier in the tabloid-style Bild’s Sunday edition.

Since he took the helm early last year, Sewing has attempted to refocus the sprawling group on stable revenue-generating business areas, including retail banking and so-called transaction banking for businesses.

Meanwhile Deutsche’s focus has shifted from its attempt to compete with US-based global giants back to its home turf of Germany and Europe.

MOST VIEWED

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,

  • Capital-Poipet express rail project making headway

    The preliminary results of a feasibility study to upgrade the Phnom Penh-Poipet railway into Cambodia’s first express railway indicate that the project would cost more than $4 billion and would take around four years to complete. The study was carried out by China Road and

  • Thai boxers to join SEA Games’ Kun Khmer event

    The Cambodian SEA Games Organising Committee (CAMSOC) – together with the Kun Khmer International Federation (KKIF) and Khmer Boxing Federation – have achieved a “great success” by including Kun Khmer in the upcoming biennial multi-sports event on its home soil for the first time, said a senior

  • Bullets to bracelets: Siem Reap man makes waste from war wearable

    Jewellery is often made from valuable gemstones like emeralds or diamonds and precious metals like gold or silver, or valueless things like animal horns. But a man in Siem Reap has approached the manufacture of delicate pieces from a different angle. His unique form of

  • 61% of 2022 imports came from just 3 markets

    The three largest exporters to Cambodia – mainland China, Vietnam and Thailand – accounted for 60.94 per cent of the Kingdom’s total merchandise imports last year, at $18.245 billion, which was up 11.99 per cent over 2021, according to the General Department of Customs and Excise. Cambodia’s total imports