Recent Layoffs at Deutsche Bank
In a significant move to reduce operational costs, Deutsche Bank has announced the layoff of 111 senior bankers from its retail and private wealth division. This decision represents an 8% reduction in the number of directors, a step aimed at addressing financial performance concerns in the highly scrutinized sector.
Impact on the Retail and Private Wealth Division
The retail and private wealth division plays a crucial role in Deutsche Bank’s overall revenue, contributing approximately 31%. The recent cuts highlight ongoing challenges faced by the division, which has struggled with underperformance compared to industry standards. The bank’s leadership is keenly aware of the need for reform and efficiency optimization, particularly in terms of cost-to-income ratios.
Future Plans and Strategic Initiatives
Claudio de Sanctis, head of the division, has expressed a strong commitment to achieving a lower cost-to-income ratio while ensuring sustainability in operations. To further these goals, Deutsche Bank plans to close over 300 branch locations and implement additional staff reductions. These strategic initiatives are part of a broader cost-cutting plan intended to enhance the bank’s financial health and operational efficiency in the coming year.