Deutsche Bank slashes global workforce, exits global equities

Deutsche Bank is pushing past a "difficult period" by overhauling its global operations, resulting in 18,000 employees losing their jobs.

The European bank announced overnight it will exit global equities functions of sales and trading, but retain an equity capital markets operation.

Additionally, it will significantly reduce the global corporate and investment banking division's risk weighted assets by about 40% and resize its fixed income operation.

The divisions that will remain operational are: corporate bank (corporate and commercial clients, transaction banking); investment bank (financing, advisory, fixed income; currencies); private bank (private customers across all segments and business clients); and asset management (DWS).

Deutsche Bank's local equities business comprises equity trading, equity sales, prime finance, equity derivatives and company research of top ASX-listed companies.

Australia also has corporate and investment banking, and fixed income and currencies operations.

The bank said it will invest €13 billion in technology and innovation by 2022, while a new separate technology function will drive digitalisation of all businesses.

Overall costs are expected to reduce by €6 billion to €17 billion in 2022, which takes into account making 18,000 full-time equivalent employees redundant.

Chief executive Christian Sewing said on Twitter the restructure is a "restart for Deutsche Bank".

"We are tackling what is necessary to unleash our true potential; our business model, costs, capital and the management team. We are building on our strengths," he said.

Paul Achleitner, chair of the supervisory board, said: "Deutsche Bank has been through a difficult period over the past decade, but with this new strategy in place we now have every reason to look forward with confidence and optimism."

The restructure will see a number of leadership changes unfold. This includes Sewing taking on responsibility for the corporate and investment bank, while president Karl von Rohr will oversee the private bank, DWS, the German region and human resources.

Werner Steinmuller remains chief executive of the Asia-Pacific region.

Bernd Leukert will join Deutsche Bank on September 1, responsible for digitalisation, data and innovation.

Deutsche Bank was contacted for comment.

Read more: Deutsche BankDWSChristian SewingBernd LeukertKarl von RohrPaul AchleitnerWerner Steinmuller
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