Deutsche Bank to cut 18,000 jobs, exit equities sales by 2022
Deutsche Bank has announced on Sunday that it will be exiting the enquiries sales and trading business, along with cutting back 18,000 jobs by 2022. This will be part of a strategic transformation and restructuring plan for the company.
The company has said that implementation of a cost reduction program is on the cards to come down to 17 billion euros by 2022 in order to target a cost income ratio of 70%. The move will cost them 7.4 billion euros.
An estimate has shown that a net loss of 2.8 billion euros should be expected by the second quarter of this year. These results will be released on 24th of June, 2019.
They have also stated that a focus will be maintained on the equity capital market operation and plans to resize fixed income operations of the department will help in shedding risk-weighted assets.
In the last few years, Deutsche Bank has been at the center of controversy, paying billions for financial misconduct. 7.2 billion dollars had to be settled with the US Justice Department on allegations of misleading their investors in sales of mortgage backed securities just before the depression.
Two years ago, they were required to settle $2.5 billion to regulators in both, the US and the UK for having manipulated interest rates.
The incident of 2015 is popularly known as the London Interbank Offered Rate Scandal which included the likes of Barclays, UBS, and the Royal Bank of Scotland.