Germany’s largest bank, Deutsche Bank, has announced plans to cut 2,000 jobs in its retail banking division this year as part of a cost-cutting strategy. The decision comes as the bank struggles with declining profits in its personal banking sector in Germany.
Why is Deutsche Bank Cutting Jobs?
Speaking at a financial conference in London, Christian Sewing, the CEO of Deutsche Bank, explained that the retail banking division in Germany needs to improve its profitability. He stated:
“Where we have to turn around the ship from a profitability point of view is clearly in the retail personal bank in Germany.”
To achieve this, the bank plans to reduce its workforce further. Sewing confirmed that these job cuts will take place in both Deutsche Bank and its subsidiary Postbank.
Job Cuts Already Accounted for in 2024 Budget
Sewing also mentioned that the job reductions had already been accounted for in Deutsche Bank’s 2024 restructuring budget, but the layoffs are now being executed.
This follows a previous round of job cuts, where 3,500 support staff were laid off last year to reduce costs. Despite these measures, Deutsche Bank still employs around 90,000 people worldwide.
Branch Closures and Further Cost-Cutting Measures
In addition to job cuts, Deutsche Bank has been scaling back its physical presence. In September 2023, the bank announced plans to close:
✅ 50 out of 400 Deutsche Bank branches
✅ More than 200 Postbank branches
The move reflects a shift towards digital banking and cost efficiency as the company faces increasing competition and economic challenges.
Impact on Employees and Customers
The layoffs will impact thousands of employees, particularly those working in retail banking. Customers may also experience changes in banking services due to branch closures, pushing them towards online and mobile banking solutions.
Conclusion
Deutsche Bank’s latest job cuts are part of its broader strategy to improve efficiency and reduce operational costs. As banking trends shift towards digital services, traditional retail banking faces increasing pressure. Whether these changes will help Deutsche Bank regain profitability remains to be seen.
