Deutsche Bank to slash 18,000 jobs in reshuffle

Deutsche Bank to slash 18,000 jobs in reshuffle

It expects a 2.8 billion euro (£2.51 billion) net loss in the second quarter as a result of restructuring charges.

In asset management, Deutsche Bank's DWS arm is seen as another of its strong points, and one the bank leaned on to extract value past year when it listed 22.5% of the business.

About 74 billion euros of risk-weighted assets will become part of a new non-core unit and the lender's capital buffer will be reduced as part of the plan.

CEO Christian Sewing took over a year ago and promised faster restructuring after predecessor John Cryan was perceived to have moved too slowly to restructure the bank. The pledge came after Deutsche failed to agree a merger with rival Commerzbank.

Deutsche Bank's supervisory board is convening to adopt a far-reaching plan presented by Chief Executive Officer Christian Sewing that's built around dramatically shrinking and perhaps even shuttering equities trading outside Europe, people familiar with the matter have said.

Deutsche has established a board-level Technology, Data and Innovation Committee to tackle this, and in a memo to staff on Sunday Sewing said Deutsche Bank would invest 13 billion euros in technology by 2022.

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

It is a restart for Deutsche Bank.

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The slashing of around one in five of its workforce, to 74,000 employees, is an unprecedented round of departures for Deutsche.

A big part of the bank's anticipated United States cuts will come from its money-losing equities business, which includes cash equities trading.

Deutsche Bank will slash 18,000 jobs over the next three years as part of a drastic overhaul to revive its fortunes.

The move is expected to cost the group about £6.6billion as it prepares to close some of its trading operations and scale back others. The new division, to be lead by current transaction bank head Stefan Hoops, will be at the heart of the lender's future business model.

The bank is held up by rivals as a traditionally strong performer in these areas, but its standing has slipped recently with the lender dipping from 5th to 6th previous year in the global league tables for transaction banking compiled by banking analytics firm Coalition.

On Friday, the financial institution launched that its head of investment banking, Garth Ritchie, used to be leaving.

Shares in the bank are down nearly 25% in the past year and hit a record low in June. The unit, which accounts for roughly half of Deutsche Bank's revenue and which was cause of its decline, will be broken in two.

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