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Deutsche Bank to eliminate 3,000 jobs, close 188 branches in Germany

BBR Staff Writer Published 24 June 2016

German banking giant Deutsche Bank has announced to cut 3,000 jobs and close 188 branches in the country, as part of its restructuring strategy outlined last year.

DB

Last year, the lender said that it would eliminate thousands of jobs to reorganize its business as customers increasingly prefer digital banking services.

As part of this restructuring, the bank plans to consolidate 723 branches into 535 larger sites in 2017 that offer improved services while expanding new forms of digital services.

Germany's largest bank said that it would invest €750m in digital products and advisory services over the next four years. It plans to invest €200m this year alone.

Deutsche Bank's management board who oversees private, wealth and commercial clients Christian Sewing said: "Our customers want a modern, customer-friendly Deutsche Bank.

"In addition, we are responding the challenges created by the low interest rate environment, increased regulations and, above all, a change in customer behaviour.

"If we are to continue to meet the needs of our customers in future, we will have to apply the right business measures."

The bank's restructuring is entering the implementation phase after its management and representatives of its employees reached a reconciliation of interests.

Deutsche Bank will cut nearly 2,500 positions its private and commercial Clients division, reaching over 90% of its planned job-reduction goal.

Sewing said: ""It is a painful decision to reduce jobs. Unfortunately, this step cannot be avoided if Deutsche Bank is to remain competitive in the long term.

"We will implement the reductions fairly and with respect for our employees, but also as quickly as possible. Every employee is entitled to know in a timely manner about what lies ahead."

However, it plans to create nearly 140 jobs in its operations for mid-sized corporate clients and add 100 jobs in its private banking unit.

Recently, it scrapped plans to set up a new digital bank in the US as it sees diversion of funds from its core strategy.

The bank's chief executive officer John Cryan said in an internal memo to bank staff which was accessed by Reuters, that setting up a digital bank would have led to diversions of resources from Deutsche's core strategy.


Image: Deutsche Bank in Beijing - China. Photo coutesy of Deutsche Bank.