Deutsche Bank to axe 3,500 jobs by end of year as part of £2.1 bn saving drive

01 February 2024 , 15:22

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Deutsche Bank is cutting 3,500 jobs (Image: PA Archive/PA Images)

Deutsche Bank has unveiled plans to cut 3,500 jobs by the end of next year in an effort to save costs.

It's part of a strategy to slash 2.5 billion (£2.1 billion) to boost the company's profits. The prestigious German bank said that these job cuts will be "mainly in non-client-facing areas". Deutsche Bank employs around 90,000 people globally, with about 7,000 workers here in the UK - its unsure how this move will affect jobs in the UK.

In an attempt to maximise efficiency, they will also streamline their marketing network, computer systems and software. This news comes as the bank announced profits of 4.2 billion (£3.6 billion) for 2023; a drop of 16% compared to the previous year.

Deutsche Bank pointed to a bigger tax bill and provisions for loan losses amidst German economic slowdown and uncertainty. Under the same efficiency drive, the group plans to triple its dividends and buy more shares, hoping to obtain more shareholder support.

Chief Exec Christian Sewing said the results had "demonstrated impressive resilience in a difficult environment, expanded our business and shown everyone our bank is sustainably profitable". CFO James von Moltke noted: "We have reached an inflection point on key dimensions."

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"We have delivered growth and capital strength while absorbing the twin impacts of continued investments and increased regulatory capital requirements. Looking ahead, with those impacts increasingly behind us, we are well positioned to accelerate our progress toward our 2025 goals."

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Lawrence Matheson