Deutsche Bank To Cut 3,500 Jobs In Efficiency Drive, Plans Share Buybacks, Dividends

In a move to reassure investors of its ongoing recovery, Deutsche Bank AG DB has announced a series of measures, including job cuts, share buybacks, and dividends.

What Happened: The German lender revealed on Thursday that it would be reducing its workforce by 3,500 employees, primarily in back-office roles, Reuters reported. This represents approximately 4% of its global workforce of around 90,000.

Deutsche Bank declined to comment to Benzinga’s inquiry on the report, although the bank’s earnings report released on Thursday notes “a reduction of approximately 3,500 roles, mainly in non-client-facing areas.”

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Deutsche Bank’s retail division, which has been the primary revenue driver since 2023, is expected to maintain its lead over the investment bank, despite anticipated interest rate cuts by central banks.

Deutsche Bank, which underwent a significant overhaul in 2019, has been striving to reduce its reliance on the volatile investment bank for revenue. The retail division’s recent success, however, has been overshadowed by regulatory scrutiny following a problematic integration of its Postbank arm.

Why It Matters: The reported job cuts and financial initiatives are part of Deutsche Bank’s ongoing efforts to stabilize its operations and shift its focus to retail banking. The bank has been facing challenges in its integration process, which suggested that the bank was considering reducing its executive board and cutting jobs to save costs.

Despite the profit drop, Deutsche Bank’s Q4 results have exceeded analyst expectations. However, with the anticipated interest rate cuts, the bank is likely to face a more challenging 2024, as warned by Germany’s financial regulator, BaFin.

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