Deutsche Bank is to cut 3,500 jobs, making it the latest global lender to target employees as part of post-pandemic cost reductions, amid a drop in profits.
The German bank said that while it had made progress on a €2.5bn (£2.1bn) cost-cutting programme that it first announced in 2022, it still needed to save €1.6bn of that total, meaning thousands of staff had to go.
It said it would simplify operations and automate work where possible, resulting in a major hit to its back-office workforce. “The measures are expected to lead to a reduction of approximately 3,500 roles, mainly in non-client-facing areas,” the bank said.
Deutsche had previously said it would be cutting jobs as part of its efficiency drive, but it had not given a figure. It was not immediately clear how many of the bank’s 7,000 London staff might lose their jobs as a result.
The bank revealed its pre-tax profits had tumbled 10% in the fourth quarter, largely due to restructuring costs and a write-down on its takeover of the UK stockbroker Numis, which it agreed to buy in October last year. Full-year pre-tax profits rose 2% to €5.7bn.
However, Deutsche Bank’s shares were up nearly 4% in morning trading, as it gave a stronger outlook for revenues.
The bank is part of a growing list of global banks that have shed thousands of jobs over the past year, particularly after a downturn in market conditions that have hit deal-making, and a shift in customer behaviour that has convinced more consumers to bank online. Some lenders who pledged not to cut jobs during the pandemic, have been cutting their workforce since.
Major cuts have been announced by US lenders, including Citibank, which revealed last month that it would be cutting 20,000 jobs by the end of 2026 as part of its own restructuring programme.
Barclays is slashing 5,000 jobs across its 84,000-strong global workforce in an effort to boost profits and appease shareholders.
Meanwhile, Lloyds Banking Group said last week it was planning to cut 1,600 staff from its branch network as it tried to reduce costs and push customers towards digital services as part of a corporate overhaul. The announcement came weeks after Lloyds confirmed plans to slash nearly 3,000 middle-management roles including analyst and product management posts.
Major staff cuts by mainstream US, UK and European banks since January 2023
UK
Lloyds Banking Group: More than 4,600
Barclays: More than 5,000
Metro Bank: 800
Nationwide: 470
Europe
UBS/Credit Suisse: 13,000
Deutsche Bank: 3,500
US
Citigroup: 25,000
Morgan Stanley: 4,800
Wells Fargo: 12,000
JP Morgan: 1,000
Bank of America: 4,000
Goldman Sachs: 3,200
