Germany’s primary bank, Deutsche Bank, has announced plans to reduce its global workforce by 3,500 positions by the end of the following year.
Joining a string of financial institutions trimming their staff, Deutsche Bank cites a decline in deal-making activity following the increase in interest rates.
With a significant workforce of approximately 7,000 employees in the UK, predominantly in London and Birmingham, the bank has not yet specified the impact of the job cuts on the UK.
Employing 90,000 individuals globally, Deutsche Bank recently expanded its presence in the UK by acquiring Numis, a prominent investment bank in the country. The announcement on Thursday indicates that the majority of cuts will target non-client-facing roles.
Since assuming leadership in 2018, Chief Executive Christian Sewing has been tasked with revitalizing the bank’s prospects by strengthening its retail division.
Deutsche Bank employees have already weathered reductions as part of the bank’s efforts to streamline its operations and reassure investors.
The financial industry has witnessed a decrease in takeovers and share listings, leading to diminished revenues for numerous financial institutions.
The decline in deal activity has prompted various firms, including those in the City of London and on Wall Street, to downsize their workforce.
Citigroup and Goldman Sachs have both reduced their staff, while Barclays, among the UK’s largest banks, trimmed 5,000 jobs globally last year and is set to provide an update to investors later this month, with further job reductions potentially on the horizon.
