Deutsche Bank (DBK.DE) is cutting 18,000 jobs over the next three years and will eventually exit all businesses related to buying and selling of equities.
The German lending giant’s CEO Christian Sewing said in a statement late on Sunday that the move is part of the “most fundamental transformation of Deutsche Bank in decades.”
"This is a restart for Deutsche Bank ... In refocusing the bank around our clients, we are returning to our roots and to what once made us one of the leading banks in the world," he added.
The headcount cull will results in cutting its global workforce to 74,000 by 2022. The group did not specify where the jobs will be lost. However, London houses its biggest trading operation with 8,000 people.
The “transformation” plan will cost €7.4bn (£6.6bn, $8.3bn) over the next three years.
“This fundamental transformation is the right response to the major changes and challenges in the financial industry,”said Paul Achleitner, chairman of the Supervisory Board of Deutsche Bank.
“Deutsche Bank has been through a difficult period over the past decade, but with this new strategy in place we now have every reason to look forward with confidence and optimism. We have a talented and dedicated team at the helm to relentlessly execute what we promise today and to create a sustainably profitable bank. Our shareholders have supported our bank’s restructuring for years and that’s why a substantial return of capital over time is an important part of our new strategy.”
Meanwhile, recruiter Morgan McKinley’s second quarter London employment monitor, published on Monday, found a 33% slump in the number of finance jobs on offer in London. There were 50% fewer roles on offer compared to the same quarter last year.