Over 15000 jobs to be cut at Deutsche Bank

The Bank is planning a massive restructuring that will cost it almost $5.6 billion.

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Deutsche Bank, the German multinational investment bank and financial services company is planning a revamp estimated to cost $5.6 billion, which will see more than one fifth of its workforce losing their jobs. About 15,000 to 20,000 employees, mainly investment bankers, out of its 91,500 strong workforce will be rendered jobless. Most of the layoffs will happen outside Germany.

The revamp is expected to cost the bank up to 5 billion euros ($5.6 billion), one of the sources said. The investment bank unit has been targeted because it has failed to show sustainable profits for over a decade now.

With such heavy investment on overhauling, the Bank will probably report losses for the entire year. However, it is hoped that this restructuring will get the Bank back on track, despite its shares falling to a record low in May.

Measure are being taken to cut the Bank’s annual costs by about four billion euros by 2022.

The Bank’s management board, which comprises nine members, is also going to be trimmed down. A bad bank will also be created for the billions of euros of non-core assets.

It is reported that Deutsche Bank is trying to fund its restructuring plan by lowering the amount of capital that regulators expect it to possess on hand. The bank is looking at a common equity tier 1 capital ratio of 12.5 per cent.

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