Deutsche Bank To Layoff 3,500 Employees In Cost-Cutting Effort
Deutsche Bank has revealed plans to cut 3,500 jobs in a strategic move to slash costs by EUR 2.5 billion by next year. This cost-cutting initiative will look to streamline the bank's marketing network and optimize computer systems and software.
The majority of the job reductions are expected to impact positions not directly involved in customer interactions. Deutsche Bank reported an annual profit of EUR 4.2 billion for the previous year, a 16 per cent dip compared to 2022. This, however, represents the fourth consecutive year in which the bank has managed to secure a profit. The financial institution cited a difficult operating environment but stressed on its impressive resilience and sustained profitability.
Deutsche Bank, Germany's largest lender, has benefited from the recent global rise in interest rates. The increase in interest rates has contributed to the growth of the bank's revenue by 6.8 per cent, reaching a total of EUR 28.9 billion. This rise in interest rates has enabled Deutsche Bank, along with its industry peers, to improve profit margins.
CEO Christian Sewing expressed confidence in the bank's performance, stating that the results demonstrated impressive resilience in a challenging environment. Despite the profit decline, Sewing highlighted the expansion of the bank's business and its sustained profitability over the years.
In response to the positive aspects of its financial performance, Deutsche Bank announced an increase in its dividend to 45 euro cents per share from 30 cents per share. Additionally, the bank plans to return more cash to shareholders by buying back EUR 675 million in shares by the end of June.
