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Deutsche Bank confirms 1,000 German jobs to get the chop

Hayley Kirton
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Deutsche Bank building and logo
The cuts are part of the German bank's restructuring (Source: Getty)

Deutsche Bank has confirmed that 1,000 jobs are to be cut in Germany.

The jobs are part of the 9,000 role reductions worldwide which were previously announced as part of the bank's Strategy 2020.

The bank also agreed 3,000 jobs would be cut in June as part of a restructuring, so today's announcement brings the total role reductions in Germany as part of the plan to 4,000.

"We consistently implement our strategy to make the bank more efficient,” said Karl von Rohr, member of Deutsche Bank's management board who has responsibility for the bank's labour relations in Germany. "We are fully aware that today's decision is a difficult change with significant personal impact for many employees.

"We will ensure that any staff reductions are carried out in a socially responsible manner."

Read more: ECB sees no risk of banking crisis in the Eurozone, official says

The most recent round of job cuts will affect mostly staff in the bank’s chief operating office, as well as employees in HR, communications, asset management, global markets and corporate finance, and the bank's macroeconomic research unit.

Today's news marks the latest in a string of job-related announcements from European banks. At the start of the week, ING revealed it would be scrapping 7,000 jobs, or roughly 12 per cent of its workforce, as part of its restructuring efforts.

And the week before, Commerzbank announced it would be dropping 9,600 full-time jobs over the course of the next four years, as it shuts down some of its non-core units and digitises its workflows to boost efficiency.

Read more: Deutsche Bank share price yo-yoing as investors await fine news

Deutsche Bank has been having a tough time lately, with its share price dipping and diving as investors scan reports and speeches for clues to its financial health following news that a fine from the US Department of Justice (DoJ) for mis-selling mortgage-backed securities could set it back as much as $14bn (£11bn).

Shares dropped particularly sharply after reports suggesting that Chancellor Angela Merkel would not be willing to offer the bank state assistance emerged in the German media.

However, share price has since perked back up, no doubt thanks to reports that the bank might be closing in on a $5.4bn settlement with the DoJ.

Read more: Is Deutsche Bank the world’s greatest contrarian trade?

Shares are currently up 0.8 per cent at €12.17, having been lifted somewhat by comments from the International Monetary Fund suggesting the lender is too big to be allowed to fail.

Deutsche Bank: What you need to know

  1. Timeline: Deutsche's annus horribilis
  2. Why is it in such a state? All the reasons Deutsche is in crisis
  3. There's a new "sick man of Europe": This time the patient is Europe's banking sector

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