In a strategic move to enhance profitability, Deutsche Bank, on 1 February declared its intention to reduce its workforce by 3,500 employees. The decision comes as a part of its cost-cutting initiative aimed at achieving savings of 2.5 billion euros ($2.7 billion) by the end of next year.
The bank outlined plans to optimise its marketing network and streamline its computer systems and software to achieve the targeted cost reductions. The job cuts will primarily affect positions not directly involved in customer interactions.
Recently, the Bank released its annual profit figures, revealing a 16 per cent decline to 4.2 billion euros ($4.5 billion) compared to 2022. Despite this dip, it marked the fourth consecutive year of profitability. The positive financial performance is attributed to the global upswing in interest rates, contributing to a widened profit margin between interest payments and earnings.
In June, last year, the bank announced to reduce its retail job workforce by 10 per cent, affecting around 1,700 jobs out of the total 17,000 positions. The reason cited behind this layoff was to improve its profitability and cut some operational costs.
However, in July, it decided to expand its operations in India and to hire thousands of employees in the country.
The company also officially released a statement that revealed that it had already hired over 2,500 people in India since January 2023 and expects to continue hiring in the coming months.
The major roles and skills the company required were in cloud migration, artificial intelligence ( AI) and machine learning ( ML). The company was also looking to upskill its existing workforce in these areas.
