Bank to sack 3,500 workers
Around 3,500 jobs will be cut in Deutsche Bank, the Germany based financial institution said Thursday and that it would buy back shares and pay dividends, in its latest pitch to investors that its turnaround remains on track.
Reuters reported that, the news came as Germany’s biggest bank, seeking to put years of turmoil behind it and focus on steadier retail banking, reported a 30% drop in fourth-quarter profit that still beat analyst expectations.
The bank had already announced plans to cut jobs, but this was the first time it had put a number on the layoffs, equivalent to just under 4% of its global workforce of about 90,000. The jobs affected will be back office roles.
The share buyback and dividends will total 1.6 billion euros ($1.7 billion) and will take place during the first half of the year. The bank also raised its forecast for revenue growth, and its shares rose 4% in early Frankfurt trade.
The announcements and earnings come at a significant turning point for Deutsche Bank.
Deutsche Bank’s retail unit overtook the investment bank as the main revenue driver in 2023, overturning the latter’s pole position over the previous three years as the retail division benefited from higher interest rates and global deals fizzled.
Reuters
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