Deutsche Bank to cut 18,000 jobs in 7.4 billion euro overhaul
Deutsche Bank (DBKGn.DE) is to ax vast swathes of its trading desks in one of the biggest overhauls to an investment bank since the aftermath of the financial crisis, in a restructuring that will see 18,000 jobs go and cost 7.4 billion euros, Trend reports citing Reuters.
The plan represents a major retreat from investment banking by Deutsche Bank, which for years had tried to compete as a major force on Wall Street.
As part of the overhaul, the bank will scrap its global equities business, scale back its investment bank and also cut some of its fixed income operations, an area traditionally regarded as one of its strengths.
The bank will set up a new so-called “bad bank” to wind-down unwanted assets, with a value of 74 billion euros of risk-weighted assets.
The depth of the restructuring shows that Deutsche is coming to terms with its failure to keep pace with Wall Street’s big hitters such as JP Morgan Chase & Co (JPM.N) and Goldman Sachs (GS.N).
The cuts were foreshadowed on Friday, when the head of Deutsche’s investment bank Garth Ritchie agreed to step down.