Deutsche Bank Cutt Thousands Of Jobs To Save Money (NYSE: DB)

Deutsche Bank has announced that it would be eliminating up to 35,000 jobs over the next two years as part of its new strategy to improve its returns. The job cuts would be realized through the selling off of businesses and internal eliminations. The company currently has about 100,000 full-time employees and an additional 30,000 contract workers.

Deutsche Bank is planning to cut 9,000 full-time positions internally and eliminate about 6,000 external contractor positions. An additional 20,000 positions will be eliminated through selling or exiting businesses. The revamp is expected to cost the company between €3 billion to €3.5 billion.

The company is planning to cease operations in 10 countries where it now operates and close up to 200 branches located in Germany. It plans to close its operations in Argentina, Chile, Denmark, Finland, Malta, Mexico, New Zealand, Norway, Peru and Uruguay. The company has already announced a planned spinoff of Postbank, which offers retail banking services from German post offices.

Deutsche Bank also announced plans to split its investment bank in two earlier this month. After the split, one part will be dedicated to corporate and investment banking while the other will focus on sales and trading. The company also wants to cut the number of its investment banking customers in half, focusing the cuts on countries with high operating risks.

Shareholders have long had complaints that the bank is too complicated and not making enough profits. Deutsche Bank reported a loss of 6.02 billion euros ($6.6 billion) in the third quarter. The company booked expenses of €27.7 billion in 2014 and plans to cut those expenses to €22 billion this year. The company predicts that €3.8 billion of the savings will come from internal cuts and €4 billion will come from selling off businesses. The bank is suspending its dividend for the 2015 and 2016 fiscal years in order to meet new financial targets.

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