Deutsche Bank, the largest bank in Germany, plans to reduce its retail job workforce by 10 per cent which means around 1,700 jobs out of the total 17,000 positions will be cut in the next few years. The reason cited behind this layoff is that bank wants to cut costs and improve its profitability.
The bank is still planning its downsizing, and these plans will be discussed with unions and worker representatives. This inclusive initiative of the bank will ensure that the concerns of the employees are being taken into consideration. However, no specific time period is announced by the bank as to when the job cuts will take place.
Deutsche Bank is also taking steps to make mortgage operations, which is part of its retail banking division, more efficient and effective. The mortgage division was not generating sufficient revenues due to low-interest rates but when interest rates were raised to control inflation, the bank’s performance improved significantly.
Over the past few years, the German bank has already closed more than 300 of its retail branches and it now has approximately 1,000 branches operating in the country. The decision to close these branches was primarily aimed to reduce the bank’s expenses.
While job cuts will take place across the bank, it is heartening to note that new positions will be filled up in certain divisions as well.