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Deutsche Bank plans more job cuts amid rising costs

Published Oct 25, 2023 22:34
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Deutsche Bank CEO, Christian Sewing, has announced plans for additional job cuts, extending beyond the previous dismissal of 800 senior roles in April this year. This decision comes despite the bank's headcount growth of over 4,000 in 2023. The move is part of an effort to curb expenses to less than 62.5% of revenue by 2025.

The bank's cost-cutting measures are necessitated by a challenging economic environment marked by high inflation, rising wages, and additional expenses due to client service issues and IT project overspending. The job cuts from April are projected to save more than €100 (€1 = $1.05) million annually. Additional savings are expected through reductions in consultant and marketing spending.

In the first three quarters of 2023, Deutsche Bank's expenses have increased by 7% and are predicted to slightly exceed €20.4 billion for the year. The bank's cost-to-income ratio stood at 72.4% in Q3, highlighting the urgency of the cost reduction plan.

In addition to the job cuts, Sewing is considering reducing bonuses due to a 12% decrease in revenue from trading fixed-income securities, which traditionally forms a significant part of the bonus pool. This development underscores the financial pressures facing Deutsche Bank as it navigates challenging market conditions and strives towards its cost-reduction targets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Deutsche Bank plans more job cuts amid rising costs
 

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