Deutsche Bank is reportedly planning to trim its retail banking headcount by nearly 2,000 in the year 2025, alongside a “significant” downsizing of its branch network.
This move is part of the bank’s strategy to achieve a set of ambitious financial targets by year-end.
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Currently, the German bank operates with a workforce of 90,000 globally, reported Reuters citing sources.
“We will reduce again branches like we had planned this year in quite a significant number,” Reuters quoted Deutsche Bank CEO Christian Sewing as saying at a financial conference organised by Morgan Stanley.
The cuts will affect both Deutsche Bank and Postbank brands, the news agency reported.
Last year, Deutsche Bank closed 125 branches and indicated that further closures were forthcoming.
However, Sewing and the bank have not specified the exact number of additional branches slated for closure this year.
Sewing assured that the restructuring costs for the job cuts have already been accounted for in the bank’s financial planning reported the news agency.
In January this year, Deutsche Bank CEO Christian Sewing suggested the possibility of exiting specific business segments following a decline in profits for both the fourth quarter (Q4) and the full year.
In Q4 2024, the bank reported a net profit of €337m ($350m), a drop from €1.4bn ($1.8bn) in the same quarter of the previous year, while full year net profit plunged 28% to €3.5bn ($3.64bn).
During the same month, Bloomberg reported on Deutsche Bank’s acquisition of a non-performing loan portfolio valued at approximately $800m from First Abu Dhabi Bank.
