Deutsche Bank To Cut 18K Jobs In 'Most Fundamental Transformation' In Decades

Germany's Deutsche Bank AG DB confirmed over the weekend it will eliminate 18,000 jobs by 2022 to save 17 billion euros ($19 billion USD).

What To Know

Deutsche Bank plans on eliminating its global equities sales and trading business and cut back its investment banking business to improve profitability. The restructuring plan will result in a net loss of 2.8 billion euros in the second quarter and is expected to cost 7.4 billion euros through 2022.

Deutsche Bank's job cutting plan proceeded right away with stock traders across Asia being told on Monday their jobs are eliminated, according to the BBC. Employees in London were told their office passes would stop working.

Why It's Important

Deutsche Bank CEO Christian Sewing said in a press release the announcement represents the a the "most fundamental transformation of Deutsche Bank in decades." However, the actions taken is necessary to "unleash our true potential" which consists of a business model, costs, capital and management team.

Sewing also said the announcement is a "restart" for the bank meant for the "long-term benefit" of stakeholders, including clients, employees, investors and society.

"We remain committed to our global network and will help companies to grow and provide private and institutional clients with the best solutions and advice for their respective needs – in Germany, Europe and around the globe," said Sewing. "We are determined to generate long-term, sustainable returns for shareholders and restore the reputation of Deutsche Bank."

Deutsche Bank shares traded lower by 3.1% to $7.78 in Monday's pre-market session. The stock has a 52-week high of $13.17 and a 52-week low of $6.60.

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Photo credit: Markus Bernet, Wikimedia Commons