Deutsche Bank, Germany’s largest financial institution, is set to eliminate approximately 2,000 jobs in its retail banking division this year as part of a broader effort to reduce costs and improve profitability.
Speaking at a conference in London, CEO Christian Sewing emphasized the need to restructure the bank’s retail operations in Germany, particularly within its subsidiary, Postbank.
This move follows a previous workforce reduction of 3,500 support staff last year.
The job cuts are already accounted for in the bank’s 2024 restructuring budget and will be implemented in the coming months.
Alongside the layoffs, Deutsche Bank is continuing to streamline its physical branch network, closing 50 of its 400 local branches and over 200 Postbank locations.
As the bank shifts towards digital banking, it aims to expand video and phone consultations for private clients.
The restructuring is expected to enhance profitability, with a targeted return on equity exceeding 10% by 2025, compared to 4.7% last year.
Despite these measures, Deutsche Bank’s financial performance in 2024 has fallen short of expectations, reporting a pre-tax profit of €5.3 billion ($5.8 billion), marking a 7% decline from the previous year.
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