Deutsche Bank today revealed plans to axe around 3,000 full-time equivalent roles in Germany as part of a revamp of its private and commercial business.
As part of the reshuffle, the bank will consolidate 723 branches into 535 larger sites in 2017, while the bulk of the job losses – around 2,500 positions – will be in the private and commercial clients division.
"It is a painful decision to reduce jobs," said Christian Sewing, the Deutsche Bank’s Management Board member responsible for private, wealth and commercial clients. "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."
Deutsche Bank, which serves around 8m customers in Germany, will also invest about €750m (£574.9m) into its digital offering between now and 2020, including €200m this year alone.
"We are responding to the challenges created by the low interest rate environment, increased regulations and, above all, a change in customer behaviour," said Sewing. "If we are to continue to meet the needs of our customers in future, we will have to apply the right business measures."
In April, the lender revealed a 58 percent dip in net profit for its first quarter, while revenues also fell 22 per cent year-on-year. However, chief executive John Cryan had previously warned that 2016 would not be a profitable year for the bank, thanks in part to the ongoing overhaul of the company.