Deutsche Bank has laid off more than a hundred senior bankers as part of its effort to achieve significant cost reductions by next year. According to the Financial Times, the bank recently terminated 111 senior employees within its retail and private wealth division, representing 8% of the unit’s directors. Deutsche Bank, based in Frankfurt, aims to reduce the cost-to-income ratio of this division from 80% in 2023 to a target range of 60% to 65% in 2024. Currently, this ratio sits at 77%.
The retail and private wealth division, which contributes 31% of the bank’s revenue and 23% of its profits, has consistently been seen as an underperforming segment within the organization.
Claudio de Sanctis, who has led the division since mid-2023, expressed his commitment to reaching the cost-reduction goals, acknowledging that more steps are necessary to achieve them. “I am working hard on all the levers that are under my control,” he said. The division has outlined plans to close over 300 branches across Germany, streamline management, and reduce front-office staff in its quest for improved efficiency.
Deutsche Bank AG (German pronunciation: [ˈdɔʏtʃə ˈbaŋk ʔaːˈɡeː] ⓘ) is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Stock Exchange.
