Deutsche Bank Announces 3,500 Job Cuts by 2025
Deutsche Bank reveals plan to reduce workforce by 3,500 jobs by 2025, targeting back-office roles. CEO Christian Sewing leads cost-saving efforts.
Deutsche Bank has announced plans to reduce its workforce by 3,500 jobs by 2025, with a focus on eliminating back-office roles. This headcount reduction includes the 800 employees that were cut last April as part of CEO Christian Sewing's previously announced cost savings plan of €2.5 billion. Sewing has been no stranger to cost-cutting measures, as he laid out a plan in 2019 to cut 18,000 employees by 2021, bringing the workforce down to around 83,000. However, the headcount has since increased to approximately 90,000, its highest level in four years.
The bank anticipates incurring €400 million in restructuring costs in 2024, a decrease from €566 million the previous year. The announcement of job cuts coincided with the release of Deutsche Bank's fourth-quarter earnings, which showed a 30% decline in profit compared to the same period the previous year. In a move to demonstrate cost discipline, the bank revealed plans to return €1.6 billion to investors in the first half of 2024, including a €675 million share buyback. Deutsche aims to increase its dividend to €0.45 per share this year, with a target of €1 per share by 2025. Additionally, the bank has raised its annual revenue goal to €32 billion by 2025, up from the previous target of €30 billion.
Deutsche Bank's revenue composition has shifted, with its retail unit surpassing the investment bank as the top revenue driver in the past year. The decision to cut jobs comes amidst a wave of downsizing in the European banking sector, with Barclays announcing plans to eliminate 5,000 roles and Lloyds indicating a reduction of 1,600 employees.
Deutsche Bank's plan to cut 3,500 jobs by 2025 reflects its ongoing efforts to streamline operations and improve cost efficiency. The bank's focus on reducing back-office roles and restructuring costs aligns with its goal of enhancing profitability and returning value to investors.
Deutsche Bank Announces 3,500 Job Cuts by 2025
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