In the latest move by global lenders to streamline operations and bolster profits in the wake of the pandemic, Deutsche Bank has unveiled plans to cut 3,500 jobs. This decision comes as part of the bank’s ongoing efforts to trim expenses, with a focus on saving €1.6 billion as part of a larger €2.5 billion cost-cutting initiative announced in 2022.
While Deutsche Bank acknowledges progress in its cost-cutting endeavours, it emphasises the need for further savings, prompting the reduction in its workforce. The bank plans to simplify operations and leverage automation technologies, primarily impacting non-client-facing roles within its back-office operations.
Notably, Deutsche Bank’s fourth-quarter pre-tax profits saw a 10% decline, attributed to restructuring costs and a write-down related to its acquisition of the UK stockbroker Numis. Despite this, the bank’s full-year pre-tax profits witnessed a 2% increase, amounting to €5.7 billion.
Despite the job cuts, Deutsche Bank’s shares surged nearly 4% in morning trading, bolstered by a promising revenue outlook. This move aligns with a broader trend observed across the global banking sector, where institutions are optimising their workforce and operations to adapt to evolving market conditions and customer preferences.
Deutsche Bank joins a growing roster of major banks implementing substantial job reductions. Citibank recently announced plans to slash 20,000 jobs by 2026 as part of its restructuring efforts, while Barclays aims to trim 5,000 positions globally to enhance profitability and satisfy shareholders.
In parallel, Lloyds Banking Group is set to reduce its branch network staff by 1,600 employees, signalling a strategic shift towards digital banking services. This announcement follows earlier plans by Lloyds to eliminate nearly 3,000 middle-management roles, reflecting a broader industry trend towards digitalization and operational efficiency.
The ongoing wave of job cuts underscores the banking sector’s proactive response to economic challenges and changing consumer behaviours, as institutions prioritise agility and financial resilience in a post-pandemic landscape.
