Deutsche Bank, the largest bank in Germany, will cut 18,000 jobs in the framework of a radical restructuring in which one of the purposes is to minimize investment banking.
This was announced today by the consortium after a meeting of the Supervisory Board.
The restructuring should be completed by the end of 2022 and it is estimated that it will cost 7,400 million euros.
At the end of the restructuring process, Deutsche Bank will have around 74,000 employees worldwide.
Already at the general meeting in May, the chairman of the consortium, Christian Sewing, had announced hard cuts in the investment banking sector that would include business with stocks and currencies and advice on mergers of companies and IPOs.
"Since then, many of you have asked me when the concrete measures would be announced. Today has come the day," Sewing said in a letter to employees.
Sewing adds that there is no alternative to restructuring for the long-term interests of the bank. "Only then can we get Deutsche Bank back to a leadership position," Sewing said.
In the years prior to the financial crisis, investment banking was one of the most lucrative sectors for Deutsche Bank and contributed a large part of the consortium's profits.
However, the 2008 crisis brought out the negative aspects of these businesses and Deutsche Bank has been forced to pay billions of dollars in fines.
In the last two quarters, the investment banking sector of Deutsche Bank had losses.
The restructuring, according to Sewing, is nothing more than a "return to the roots of Deutsche Bank".
"It's about putting the needs of our customers back in the center of what we do," the letter explains.
According to Sewing, with the restructuring the Deutsche Bank will become smaller but also more stable and more competitive and will be again close to its DNA, concentrating on those aspects in which it has greater capabilities.
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