Business

Deutsche Bank to axe 3,500 jobs to cut costs

The German banking giant said the move is part of efforts to cut €2.5 billion (£2.1bn) of costs to help improve its profits.

Deutsche Bank has announced job cuts as it bids to reduce costs
Deutsche Bank office Deutsche Bank has announced job cuts as it bids to reduce costs (Philip Toscano/PA)

Deutsche Bank has revealed plans to cut 3,500 jobs by the end of next year to slash its costs.

The German banking giant said the move is part of efforts to cut €2.5 billion (£2.1bn) of costs to help improve its profits.

Deutsche Bank told investors the jobs cuts will be “mainly in non-client-facing areas”.

The company employs around 90,000 people globally, with roughly 7,000 workers in the UK. It has not disclosed how many of its UK staff will be impacted.

The group will also streamline its marketing network, computer systems and software as part of the efficiency drive.

It came as the bank posted a profit of €4.2bn (£3.6bn) for 2023, declining by 16% against the previous year.

Deutsche Bank said it was impacted by a larger tax bill and increased provision for loan losses amid a slowdown in the German economy and continued uncertainty.

The group also said it plans to triple its dividend and buy back more shares as part of its efforts to win the backing of more shareholders.

Chief executive Christian Sewing said the results had “demonstrated impressive resilience in a difficult environment, expanded our business and shown everyone our bank is sustainably profitable”.

James von Moltke, chief financial officer, said: “We have reached an inflection point on key dimensions.

“We have delivered growth and capital strength while absorbing the twin impacts of continued investments and increased regulatory capital requirements.

“Looking ahead, with those impacts increasingly behind us, we are well positioned to accelerate our progress toward our 2025 goals.”