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Deutsche Bank could cut up to 20,000 jobs | |
(about 5 hours later) | |
Up to 20,000 jobs could be axed at Deutsche Bank in a radical reorganisation of Germany's biggest bank. | |
The investment bank is expected to be particularly hard hit, with many of the cuts set to affect London and New York. | |
The supervisory board of Deutsche Bank is expected to approve the plan on Sunday. | |
The reorganisation of the business follows the failure of merger talks with rival Commerzbank in April. | |
The German government had supported the tie-up, hoping it would create a national champion in the banking industry. | |
However, both banks concluded that the deal was too risky, fearing the costs of combining might have outweighed the benefits. | |
Chief executive Christian Sewing, who took on the top job just over a year ago, told shareholders at the annual general meeting in May that he would "accelerate transformation" by focusing the bank on "profitable and growing" businesses. | |
"I can assure you: we're prepared to make tough cutbacks," he said. | "I can assure you: we're prepared to make tough cutbacks," he said. |
Resignation | |
The 20,000 job cuts would be equivalent to a fifth of the company's global workforce. | |
With almost 8,000 staff, London is the home of its biggest investment operations. | |
Deutsche Bank has been struggling for years with the decline of its investment bank and has made several attempts to revamp its business. | |
It is thought that the latest plan will be the most ambitious so far and it has already prompted the resignation of one top executive. | |
On Friday, the bank announced that its head of investment banking, Garth Ritchie, was leaving. | |
Shares in the firm have fallen by a quarter over the last year. Last month they fell below €6 a share, but have recovered a little since then, and on Friday closed at €7.17. | |
As well as poor financial performance, Deutsche Bank has also been caught up in banking scandals. | |
Late last year prosecutors raided its headquarters in a money-laundering investigation. | |
They were looking into whether Deutsche Bank staff helped clients set up offshore accounts to transfer money from criminal activities. | |
Deutsche has also been connected with another huge money-laundering scandal at Denmark's Danske Bank. | |
Last year Danske Bank said that it had detected billions of dollars of suspicious payments at its Estonian operation. | |
Deutsche Bank admitted it had processed some of Danske's Estonian transactions, but had terminated its relationship with with the bank in 2015 after "identifying suspicious activity". |