Deutsche Bank, Germany’s premier financial institution, has announced plans to eliminate 3,500 positions globally by the end of the following year, joining a wave of banks reducing their workforce in response to a downturn in deal-making activities triggered by rising interest rates.
With approximately 7,000 employees in the UK, primarily based in London and Birmingham, it remains unclear if the job reductions will impact its UK operations.
Globally, Deutsche Bank boasts a workforce of 90,000 and has recently increased its presence in the UK market through the acquisition of Numis, a leading British investment bank.
The bank indicated that the majority of the job cuts would involve non-client-facing roles, as part of the latest effort to streamline operations.
Since taking the helm in 2018, Chief Executive Christian Sewing has been focused on revitalizing the bank, particularly its retail division, which has involved previous rounds of job cuts aimed at consolidating the bank’s operations and appeasing investors.
The banking sector has been grappling with decreased revenues due to a slump in mergers and acquisitions and initial public offerings.
Banks, which typically facilitate large financial transactions and earn substantial fees in the process, have been particularly affected by the reduction in such deals.
This slowdown has led to workforce reductions across the financial industry, including major financial centers like the City of London and Wall Street.
Notably, Citigroup and Goldman Sachs have also reduced their staff numbers, and Barclays, one of Britain’s biggest banks, eliminated 5,000 positions globally last year. Barclays is expected to provide an investor update later this month, which may include news of additional layoffs.
