Germany’s Deutsche Bank is going to do mass layoffs. A report said that the bank will fire 3500 of its employees to reduce the cost. The German multinational investment bank will cut 3,500 jobs to pursue a US$2.7 billion cost-cutting plan by 2025, the report said.
Bank wants to save 1.7 billion US dollars
In an official statement, Deutsche Bank said that most of the jobs in office functions would be lost. The bank also said it had made progress toward its goal but still had US$1.7 billion left to save.
The bank wants to earn profit
Deutsche Bank said on Thursday it would cut 3,500 jobs over the next year as part of an effort to slash costs by 2.5 billion euros ($2.7 billion) and boost profits, while Germany’s biggest lender benefits from higher global interest rates. will be. The bank said it will try to streamline its marketing network and computer systems and software as it looks to cut costs. It said the cuts in the number of positions would mostly be for jobs that do not involve direct work with customers.
16 percent decline in earnings
The bank made this announcement along with the release of annual profit figures. It said the bank earned 4.2 billion euros ($4.5 billion) last year, a 16% decline from 2022. However, this was the fourth consecutive year in which the bank made a profit. The bank has benefited along with its peers from the global rise in interest rates, which may have increased the profit margin between the bank’s interest payments and its earnings.
This announcement was made for the shareholders
Bank CEO Christian Sewing said that we expanded the business and showed everyone that our bank is consistently profitable. Revenue rose 6.8% to 28.9 billion euros. The company announced it was raising its dividend from 30 cents a share to 45 euro cents a share and would put more cash in the hands of shareholders by buying back 675 million euros of shares by the end of June.
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