Deutsche Bank to Cut 3,500 Jobs Over Next Two Years

Deutsche Bank, Germany’s largest financial institution, has unveiled plans to cut 3,500 jobs worldwide by the end of the next two years, joining a slew of lenders retreating from their workforce amidst a decline in deal-making activity following rising interest rates.

The multinational bank, which currently employs around 7,000 people in the United Kingdom, primarily in London and Birmingham, has not officially confirmed whether the job cuts will directly impact its UK operations. Deutsche Bank boasts a global workforce of 90,000 employees and recently expanded its presence in the UK through the acquisition of Numis, a leading investment bank.

Thursday’s announcement indicates that the majority of the job reductions are expected to target non-client facing roles. Chief Executive Christian Sewing, who assumed leadership in 2018, has been on a mission to revitalize the bank’s fortunes, with a particular focus on strengthening its retail division. Previous rounds of staff cuts have already been implemented as part of the bank’s efforts to streamline its operations and reassure investors.

The financial industry, grappling with a decrease in takeovers and share listings, has witnessed a corresponding decline in revenues for many institutions. As banks typically act as intermediaries in major financial deals, a reduction in deal activity translates to diminished earnings from fees.

Deutsche Bank’s move aligns with the trend in the sector, as other major financial institutions, including Citigroup and Goldman Sachs, have also undertaken staff reductions. In the UK, Barclays, one of the largest lenders, shed 5,000 jobs globally last year. The bank is expected to provide an update to investors later this month, with the possibility of further job losses on the horizon. The industry-wide workforce adjustments underscore the ongoing challenges faced by financial institutions in navigating a changing economic landscape.