Deutsche Bank, Germany’s largest bank, has revealed its intention to reduce its workforce by 3,500 employees globally by the end of the next two years. The decision comes as part of the bank’s strategy to adapt to changes in the financial landscape, with many institutions facing challenges due to a decline in deal-making activity following an increase in interest rates.
While the bank has not confirmed the specific impact on its UK workforce, where it employs approximately 7,000 people, mainly in London and Birmingham, the announcement raises concerns about potential job cuts in the region.
Deutsche Bank, with a global staff of 90,000, had recently expanded its presence in the UK through the acquisition of Numis, one of the leading investment banks in the country. The latest move, however, seems to focus on non-client facing roles, indicating an effort to streamline internal operations rather than directly affecting customer services.
The decision to reduce the workforce is part of Chief Executive Christian Sewing’s efforts to reshape the bank since taking charge in 2018. Sewing’s strategy involves strengthening the retail division to improve the bank’s overall performance.
Deutsche Bank has already undergone previous rounds of job cuts as part of its broader business restructuring initiatives. The financial industry, as a whole, has witnessed a decrease in takeover activities and share listings, impacting the revenues of many financial institutions.
Banks often play a pivotal role as intermediaries in significant financial deals, earning substantial fees from such transactions. The decline in deal activity has prompted various firms, including those in major financial hubs like the City of London and Wall Street, to reduce their headcounts.
Other financial institutions, such as Citigroup and Goldman Sachs, have also implemented job cuts in response to the challenging market conditions. Barclays, one of the UK’s prominent lenders, reduced its global workforce by 5,000 jobs in the previous year, with a possibility of further job losses as the bank prepares to update investors later this month.
