You read yesterday about the “Restructuring” happening at many companies across American business, but it’s not isolated to the United States. Deutsche Bank has announced it will begin its own workforce reductions by firing about 3,500 employees. Helena Smolak reports in The Wall Street Journal:
Deutsche Bank plans to cut about 3,500 jobs in a bid to reduce costs after it reported a drop in profit due to higher expenses.
The German bank—which employs about 89,000 people, according to FactSet—said Thursday that the job reductions are aimed at helping it deliver the remaining 1.6 billion euros—equivalent to $1.73 billion—of savings needed to hit the €2.5 billion target it had set for its efficiency program. Around €900 million in savings have been achieved to date, it said.
The move marks the latest attempt by Germany’s largest lender to boost its performance in a yearslong restructuring since Christian Sewing took over as chief executive officer in 2018.
The effects of cost-saving measures are expected to be reflected in its 2025 expenses, Deutsche Bank said. The job cuts will affect mainly areas that don’t deal with clients.
Action Line: Watch closely for signs of economic weakness as companies “restructure” their operations. Click here to subscribe to my free monthly Survive & Thrive letter.
