UK job losses to be in ‘the hundreds’ as Deutsche Bank restructures

Deutsche Bank's Birmingham offices (right)
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Deutsche Bank has said that as part of its restructuring announced on Sunday it would be downsizing with the loss of “hundreds” of jobs in the UK.

The German bank which has 8,000 UK employees – 7,000 in London and 1,000 in Birmingham – is in the process of cutting its total costs by a quarter by 2022.

In a statement it said it was radically transforming its business model to become more profitable, improve shareholder returns and drive long-term growth.

This will see 18,000 employees from a global workforce of 74,000 lose their jobs in an attempt to reduce adjusted costs by approximately €6bn by 2022.

A source, who did not want to be named, said they could not be specific about the total number of UK job losses but that they would “be in the hundreds and communication with those who were to lose their jobs had started today and would continue of the next few days, weeks and months”.

“Impacted employees will be told what their options are in meetings with HR.”

The source also said that there would be no regional breakdown of the job cuts at this time.

“We want to make the bank leaner and stronger so we can offer a better service to our clients,” a spokesperson said. “We have decided to focus our resources on businesses where clients need us most. We are setting up a dedicated corporate bank specialising in the financing and treasury products the world’s companies need to support trade and investment around the globe.

Deutsche Bank opened its first London branch in 1873 and launched in Birmingham in 2007 and now has offices in Five Brindleyplace.

Paul Achleitner, Chairman of the Supervisory Board of Deutsche Bank which oversaw the transformation, said: “This fundamental transformation is the right response to the major changes and challenges in the financial industry.

“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.”

In April the proposed merger between Deutsche Bank and Commerzbank collapsed.

This provided more uncertainty for Deutsche Bank in the UK. Back in 2017 it suggested that it may have to move as many as 4,000 of its 8,000 jobs once the UK left the EU.

As part of the new strategy the bank said it would be creating a fourth business division called the Corporate Bank, which will be comprised of the Global Transaction Bank and the German commercial banking business.

In a letter sent out to staff on Monday 8 July, CEO Christian Sewing said that after further stabilising the bank last year, a fundamental transformation was now needed.

“First let me say this: I am very much aware that in rebuilding our bank, we are making deep cuts,” he’s letter said.

“I personally greatly regret the impact this will have on some of you. In the long-term interests of our bank, however, we have no choice other than to approach this transformation decisively.

“Only then can we build on our long-standing history and make Deutsche Bank a leading bank once again. A bank which we can be justifiably proud of.”