'There is no time to lose:' Deutsche Bank is embarking on a major overhaul — and it will lead to big job losses

pulse

April 26, 2018 9:06 AM

The German lender plans to scale back US operations in both rates sales and trading, while corporate finance operations in both the USA and Asia will shrink.

Deutsche Bank set for major business overhaul including significant job losses.
The German lender plans to scale back US operations in both rates sales and trading, while corporate finance operations in both the USA and Asia will shrink.
Changes come as the bank reports a 79% drop in net profit in the first quarter.
"Even a quick look at the figures makes one thing clear: we have to take action – fast," CEO Christian Sewing told staff.

LONDON — Deutsche Bank announced a major change of direction with large numbers of job losses expected as a result of the overhaul.

The plans, unveiled alongside the German lender's first quarter results, will see Deutsche pull back from its Wall Street ambitions, and focus instead on servicing its European client base.

Plans involve scaling back the bank's US operations in both

"Our Corporate & Investment Bank is also doing well in some areas and held or gained market share in certain areas," chief executive Christian Sewing said in a statement.

"However, we are not strong enough in other areas of this business. Therefore we have to act decisively and to adjust our strategy. There is no time to lose as the current returns for our shareholders are not acceptable."

The results announced on Thursday are the first presided over by Sewing, who has been at the bank's helm for less than a month, following the ousting of former boss John Cryan.

Cryan was brought in during 2015 to try and turn round the struggling bank, but lost the faith of Deutsche's board, and was swiftly ousted just over two weeks ago. He was replaced by Sewing, who is German and has been with the bank since 1989. It was widely expected that Sewing's appointment would lead to a strategic overhaul for Deutsche Bank.

Investors in the bank were not hugely moved by the announcements, and by 8.55 a.m. BST (3.55 a.m. ET; 9.55 a.m. CET) Deutsche Bank's Frankfurt-traded shares were down around 2%.

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