Deutsche Bank CEO Christian Sewing slashes 18,000 jobs in $8.3 billion overhaul
Live MintFrankfurt: Deutsche Bank AG unveiled a radical overhaul that will see the lender exit its equities business, post a 2.8 billion-euro second-quarter loss and cut the workforce by a fifth to reverse a slide in profitability. Chief Executive Officer Christian Sewing will shelve the dividend this year and next and take restructuring charges of 7.4 billion euros through 2022 to pay for an overhaul that shrinks the German lender’s once-mighty investment bank along with its global footprint and key fixed-income business. With a stock price down by half in the past two years, selling new shares wasn’t an option and the bank said it does not plan a capital increase to pay for the overhaul. What Bloomberg Intelligence Says Deutsche Bank’s plan to downsize its investment bank, revamp management and cut costs while investing in controls and technology could open the most promising path yet to boosting profitability, according our early analysis, after years of piecemeal changes that failed to deliver. The new division, to be lead by current transaction bank head Stefan Hoops, will be at the heart of the lender’s future business model.
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