One of the world’s leading financial services providers, Deutsche Bank plans to reduce approximately 3,500 jobs, mainly in non-client-facing areas.
The layoffs are nearly under 4% of its global workforce of about 90,000. The bank has set a goal for a quarterly run-rate of adjusted costs of € 5 billion and aims to operate with total costs of around € 20 billion in 2025.
Deutsche Bank has made progress on its € 2.5 billion operational efficiency programme during 2023. As of year-end 2023, savings either realized or expected from completed efficiency measures grew to € 1.3 billion.
The bank expects the programme’s remaining savings of € 1.6 billion to be driven by measures relating to infrastructure and technology efficiencies, including application de-commissioning and operating model improvements; optimization of the bank’s platform in Germany; and front-to-back process redesign, including simplified workflows and automation. The vast majority of these measures are expected to be reflected in the adjusted cost run-rate in 2025.
Moreover, The announcements and earnings come at a significant turning point for Deutsche Bank. While announcing the results, Deutsche Bank reported 2023 profit before tax of € 5.7 billion and announced € 1.6 billion of proposed capital distributions to shareholders.
Christian Sewing, Chief Executive Officer, said, “Our performance in 2023 underlines the strength of our Global Hausbank strategy as we help our clients navigate an uncertain environment.”
“We have achieved our highest profit before tax in 16 years, delivered growth well ahead of target, and maintained our focus on cost discipline while investing in key areas”, Christian Sewing added.
Layoff Update
So far in 2024, there have been 211 layoffs at tech companies with 44,502 people impacted (1,349 people per day). The tech companies including Google, Salesforce, Microsoft, and more have sacked employees in January.
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