Deutsche Bank is to slash more than 7,000 jobs in a move that is likely to affect London staff as the struggling lender reshapes its trading and investment banking operations.
The struggling German lender said on Thursday that it would cut its workforce from 97,000 to “well below” 90,000 and that reductions are already under way.
It said headcount in its stocks trading business, mostly based in New York and London, would be reduced by about 25%.
The move, which will cost the bank 800 million euros, is part of new chief executive Christian Sewing’s turnaround strategy, which will see the bank refocus on its European and German customer base.
Deutsche Bank has struggled with high costs and regulatory issues and the lender replaced its British boss, John Cryan, in April after three years of losses.
Mr Sewing said the bank was committed to its international investment banking operations but must “concentrate on what we truly do well”.
The new strategy marks a retreat from decades of global expansion in which the bank sought to compete with Wall Street titans Goldman Sachs and JPMorgan.
The announcement came before the board faces down investors at the bank’s annual shareholder meeting.
Chairman Paul Achleitner told shareholders that Mr Cryan had “set the ball rolling for fundamental change” but later displayed “shortcomings in decision-making and implementation”.
“You are right to expect the bank and its management to hit the targets it has set itself,” he said. “If there are signs those targets are in jeopardy … then we on the supervisory board have to act swiftly and decisively.”