Wednesday , August 10 2022

The largest bank in Germany will remove 18,000 jobs – ELESPECTADOR.COM



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Deutsche Bank said on Sunday it would eliminate 18,000 jobs – one-fifth of its workforce – for three years, an unprecedented plan in an enterprise that has been pulling out financial problems for years.

Figure 9 shows the headquarters of Deutsche Bank Deutsche Bank in Frankfurt am Main, West Germany.AFP

"Restructuring will reduce the number of full-time equivalent jobs from 18,000 to 2022 to cut the workforce to about 74,000," the bank said in a statement.

Deutsche Bankthat last year has abolished 6,000 jobs, explained that he wants to cut costs by 6,000 million euros a year.

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The announced plan will require costs of € 3 million in the second quarter of the current financial year and result in a net loss of € 2,800 million.

For the full year, Deutsche Bank must in all likelihood return to a red-light conclusion after a small profit in 2018, preceded by three consecutive years of loss.

Last chance

This plan looks like the last chance for the bank, just over two months after the failure of the merger talks with its rival, also in difficulty, Commerzbank.

This plan was approved by the German government, anxious to see a key element of the financial sector at risk of being bought by foreign investors.

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Deutsche Bank has seen stock market capitalization cut by half in four years, making it a potential takeover bid and the first German bank worth less than 15,000 million euros on Friday at the stock market price.

"Deutsche Bank plays in the first division and has to take the necessary steps to keep it that way," said German Economy Minister Peter Altmayer on the Bild Sunday edition, referring to job cuts.

Bank Chief Leader Christian Sawing – who took office last year – chose a strategy based on focusing on more robust activities such as retail banking and focusing on Germany's and Europe's developmental dreams in the United States.

Pride "Down"

On the contrary, the investment banking sector – which was a priority group – seems to be doomed to oblivion. Deutsche Bank will also cease trading in shares, a branch it can sell to the French BNP Paribas.

On Friday, investment banking chief South African Garth Richie was fired.

Regarding the activities in United StatesThe bank is faced with a number of court cases, some of which are related to the scandal of tax evasion systems known as Panamanian documents.

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To clear its bills, Deutsche Bank also announced on Sunday the creation of a subsidiary to extract assets considered at risk for 74,000 million euros. These are mostly highly speculative financial products.

Apart from Deutsche Bank, the entire German banking sector is going through a difficult period after being the country's pride for years.

Last year, more than 32,000 jobs were cut, down by more than 5.4% of the workforce in the sector, which has never been seen since Germany's reunification in 1990, according to Barkow Consulting.

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