Stock market quotes, forex, financial news, forex tools –

Deutsche Bank will fire 18 thousand people

 Breaking News
  • Boeing announced the start of massive layoffs The Boeing Company has no choice but to take drastic measures. The world’s largest manufacturer of space and aviation equipment is forced to reduce the number of staff by 13...
  • Serious drawdown of oil quotes Today, oil is actively declining. A very significant increase in the reserves of “black gold” in the United States caused this drop. Moreover, the fears that Russia will not reduce...
  • Swiss watch makers are in crisis Swiss watch exports in April crashed at a record pace the drop has totaled 81% compared with the same period last year. Halting production and difficulties with sales caused by...
  • The intensification of the conflict between the USA and China leads to reduction of oil prices The energy market has started the trading session rather unsuccessfully. The next round of the trade war between the States and China caused the price fall. Because of this investors...
  • Germany saves Lufthansa An air carrier Deutsche Lufthansa AG has suffered losses because of the spread of the coronavirus pandemic. It became known that the German government had not left the matter unattended...
Deutsche Bank will fire 18 thousand people
July 08
13:00 2019

Deutsche Bank has announced their plans for restructuring. The new model will provide an opportunity to increase profits, raise shareholders’ income and improve business growth in the future.

A decrease in investment operations and reduction in expenditure by 6 billion euros by the year 2022 will become the main points of the change in the current model.

Business restructuring means large cuts. 18 thousand workers will lose their jobs.

The bank will establish a new branch – CRU. It will manage assets with low returns, as well as assets that are not suitable for the new model and strategy.

Transformation financing will be carried out at the expense of internal funds. So, the bank will suspend dividend payments this year and the next one. Shareholders should wait, since the restructuring will release about 5 billion euros.  They will get their payments in 2022.

The program of change will cost 7.4 billion euros. 5.1 billion euros of that amount will be used this year.

It is assumed that the bank report for the period between April and June will indicate a loss of 2.8 billion. Without taking into account the expenses, the bank profit would have amounted to 120 million euros. Deutsche Bank’s revenue is projected around 6.2 billion euros.

Trade operations, cooperation with clients as well as handling assets that have a fixed income will become the main directions of the new model.

The bank will stop operations with shares. BNP Paribas will deal with the current clients, operating in this sphere.

Last week it became known that the Head of Corporate & Investment Bank Garth Ritchie would leave the post on July 31. Christian Sewing will chair this unit.


The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

Related Articles


No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment