Germany’s largest bank, Deutsche Bank, has announced its plans to cut 3,500 jobs as part of a major cost-cutting initiative following a drop in its net profit for 2023. The bank reported a net profit of 4.2 billion euros ($4.5 billion), which marks a 16 percent decrease compared to the previous year when profits were boosted by a one-off tax benefit. Additionally, costs related to the company’s savings and efficiency program impacted net profit, with Deutsche Bank spending 566 million euros on restructuring and severance expenses. Despite this, revenues increased by six percent to 28.9 billion euros, thanks to higher interest rates set by the European Central Bank.
Deutsche Bank’s CEO, Christian Sewing, commended the bank’s performance in what he described as an “uncertain environment.” He highlighted that Deutsche Bank achieved a pre-tax profit of nearly 5.7 billion euros, the highest in 16 years. Sewing also emphasized the bank’s commitment to cost discipline and announced a 2.5-billion-euro efficiency push aimed at improving profitability.
As part of its efforts, Deutsche Bank intends to reduce its workforce by approximately 3,500 employees over the next two years, primarily focusing on non-client-facing positions. In 2022, the bank employed around 85,000 people globally.
Deutsche Bank has also outlined new targets for 2025, aiming to achieve revenues of 32 billion euros while operating with total costs of around 20 billion euros. Furthermore, the bank plans to propose a shareholder dividend of 0.45 euros per share for 2023, representing a 50 percent increase from 2022.
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