Deutsche Bank looks all set to cut off one fifth of its workforce as they lay down plans to cut 15,000–20,000 jobs. The trimming of workforce is a part of Christian Sewing’s attempt to reinstate the falling bank’s overall revenues. He has decided to shrink the lender’s investment banking sector to help generate new resources of revenue generation. The plan of job cuts was proposed to Deutsche Bank’s investors and supervisory board a few days earlier.
Deutsche Bank has a total of 91,000 employees, which makes the probable job cut resemble around one-sixth to one-fifth of the total workforce. This is not for the first time that the company has gone for a massive job cuts. Deutsche Bank had implemented 7,000 jobs just last year. As per Financial Times, the company is also set to bring about some massive operational changes. Deutsche Bank is also in plans to get the “bad bank” concept reinstated at the earliest. This new concept will allow them to store or sell assets worth about €50 billion post risk adjustments. The bank will expectedly retain the currency trading operation and bond trading business and will get a fully fledged plan for bad bank announced by their next half yearly results.
Bank stocks in the United States stock exchange markets have registered an unexpected growth of late after the Federal Reserve cleared almost every bank with the CCAR results. Almost every major bank including JP Morgan Chase, Wells Fargo, Bank of America, and the Deutsche Bank saw their stocks move up by 2 to 3 per cent. The banks increased the dividends as well with most increasing the size of their lending capacities by a sizeable amount. The Federal Reserve rate cuts are still pending which expectedly will be the last factor to decide the upcoming days for banks in the stock market exchange.