3,500 Deutsche Bank Jobs Axed in Bid To Sreamline Operations

Deutsche Bank unveiled plans to streamline operations, announcing a reduction of 3,500 jobs as part of a broader initiative to slash costs by €2.5 billion ($2.7 billion) by 2025.

Germany’s largest lender revealed on Thursday its strides toward achieving this ambitious target, yet acknowledged the need to secure savings of €1.6 billion ($1.7 billion). The bank outlined that a portion of these savings would stem from “simplified workflows and automation,” with the majority of job reductions expected in back-office functions, according to a statement released by the institution.

Despite challenges, Deutsche Bank reported a 2% increase in profit before tax for 2023, reaching €5.7 billion ($6.1 billion) — marking its highest level in 16 years. However, net profit experienced a 14% decline, falling to €4.9 billion ($5.3 billion) due to an uptick in its tax obligations.

Reflecting on the bank’s performance, CEO Christian Sewing expressed satisfaction, stating, “We have delivered growth well ahead of target and maintained our focus on cost discipline while investing in key areas.”

In a move to enhance shareholder value, Deutsche Bank announced plans to return €1.6 billion ($1.7 billion) to investors in the first half of the year through dividends and share buybacks.