Deutsche Bank to axe 18,000 jobs

Customers outside a Deutsche Bank branch in Frankfurt

Germany's struggling Deutsche Bank says it will cut 18,000 jobs by 2022 in a sweeping restructuring aimed at restoring consistent profitability and improving returns to its shareholders.

The 2011 appointment of Anshu Jain, the group's head of corporate and investment banking, as joint-chief executive exemplified the move, although it had the added effect of intensifying the rivalry between Deutsche's investment operations, which were based mostly in NY and London, and its retail and other non-investment activities in Frankfurt. He'll lead fixed-income and currency sales and trading, reporting to Sewing, Deutsche Bank said Sunday. Sewing, who flagged the restructuring in May after a failed merger attempt with Commerzbank, wants to focus on more stable sources of revenue.

The bank hopes to save around €17bn in costs by 2022 but also expects to lost €7.4bn in lost profit and restructing costs as a result of the changes.

He said that the bank intends to strengthen its private and corporate banking offerings "by offering innovative digital solutions and outstanding advice" adding that the bank's rebuilding will "only be successful if we fundamentally reshape our infrastructure" and "become more innovative and efficient whilst simultaneously strengthening our controls".

Its investment banking team for the Asia-Pacific region numbered about 300 people before the cuts, and 10% to 15% will be laid off - nearly all in its equity capital markets division, according to a senior Asia banker with direct knowledge of the plans.

Deutsche bank's headquarters in London.

Deutsche Bank has not revealed how many of its United Kingdom workforce will be affected.

Ferguson happy for New Zealand to be World Cup's 'scrappers'
India have been missing the services of Shikhar Dhawan who had earlier been ruled out of the World Cup due to a broken thumb. All four of the previous matches at Old Trafford during the tournament have been won by the team batting first.

While Barclays may pick up business, the real victors from Deutsche's demise are the U.S. banks who have prevailed after many unsuccessful attempts (RBS, UBS, DB and others) to muscle into the so-called "bulge bracket" of worldwide investment banks.

Teams of share traders in Tokyo and other offices in Asia were told on Monday that their jobs were going.

One senior banker, still in a job, questioned how well the slimmed down franchise could compete in future. So far this year, it ranks 8th regionally for M&A activity.

The bank will put its unwanted assets to a new Capital Release Unit, where the bank said it will transfer $323 billion, or 20 percent of its leverage exposure.

"We have a talented and dedicated team at the helm to relentlessly execute what we promise today and to create a sustainably profitable bank".

"They give you this packet and you are out of the building", said one equities trader.

"If you have a job for me, please let me know", said a banker leaving the Hong Kong office on Monday.

Related News:

Most liked

US, Taliban peace talks 'most productive session': envoy Khalilzad
The two sides will resume on the 9th after this intra-Afghan interaction which Khalilzad called "a critical milestone". The Taliban now control and influence more territory than at any point since 2001.

Wall St dragged down by Apple; hopes of sharp rate cut fade
Asian indexes tumbled with the Shanghai Composite down 2.6%, Japan's Nikkei down 1%, and Hong Kong's Hang Seng down 1.8%. The common currency has been under pressure from dollar strength and weakness in the German industrial sector.

Dodgers, Padres Play Through 7.1 Earthquake That Rocked Los Angeles
Aaron Hicks had tied it at 3 in the top of the ninth for the Yankees, homering on a 2-2, two-out pitch from Colin Poche (2-1). San Diego Padres at Los Angeles Dodgers: By the Numbers Los Angeles batters own a.925 OPS, .279 ISO against Lucchesi.

Indians' Carlos Carrasco diagnosed with Leukemia
The Cleveland Indians are sharing new details about starting pitcher Carlos Carrasco's leukemia diagnosis. They asked everyone to "keep Carlos and his family in their thoughts in this challenging time".

Bartomeu: I know where De Ligt will be playing next season
They conceded 54 league goals - their worst tally since 1978/79 - as they finished sixth in the Premier League. Place 5 x €/£10 or more bets to receive €/£20 in free bets.

AMD May be Set to Lower Radeon 5700 Prices Ahead of Launch
The Radeon 5700 XT , previously listed at $450, will now cost $400, and the Radeon 5700, previously $380, will be priced at $350. All the new offerings are available from today on AMD .com, leading e-retailers, and leading offline retail stores.

Wolff, Morikawa grab share of lead READ MORE
Wolff could have been the solo leader but a birdie on the par-3 17th hole moved him back to 15 under for the tournament. But Wolff notched back-to-back birdies at 14 and 15, leaving DeChambeau a stroke back even after he birdied 16.

HongMeng OS is faster than Android, Huawei ceo claims
The company recently announced that they will be coming with their own operating system dubbed, HongMeng OS. That means, both Google and Huawei have been given the go-ahead to work together again.

Moon claims latest Trump-Kim meeting ended hostilies
To find a compromise, each side may have to drop the ongoing "good cop, bad cop" cycle of engagement and threats, Narang said. The letter was sent last week - a few days before the historic meeting of Trump and Kim - to all United Nations member states.

Congress-JD(S) internal feud responsible for crisis in Karnataka: BJP
Munirathna, a two-time Congress MLA and former BBMP corporator, was among those who were vocal on the reasons for the resignation. HD Kumaraswamy is now likely to resign as the chief minister as the strength in 224-seat Assembly has now come down to 104 seats.

Opposition New Democracy leads Greek exit polls
Speaking after the exit polls, Greek finance minister Euclid Tsakalotos said: "This is a big win for New Democracy". Greece's opposition party New Democracy are set to win the country's snap general election, early results show.

Thunder explored blockbuster trade with Raptors involving Westbrook, George
The Heat might be interested in dealing for Thunder guard Russell Westbrook , according to a report from the Miami Herald . According to Wojnarowski , the Clippers are sending a record-setting collection of draft choices in exchange for George.

Craig David Reportedly Set To Enter Love Island Villa As Guest DJ
Amber seems happy at the idea of Ovie pursuing a romantic connection with Joanna, leaving Michael single and available. Speaking on Good Morning Britain from outside the villa, he said: "I'm looking to get in front of the fire pit".

Trump mulling executive order to add citizenship question to census
The internal dispute has led the President to privately air frustrations at his 81-year-old commerce secretary. District Court Judge George Hazel wants the administration to state its intentions by 2 p.m.

United States labour market booms in June
The slower pace of hiring is consistent with easing economic growth as the effect of tax cuts fade and global worries increase. The professional and business services sector was the biggest contributor to employment in the United States last month.