Deutsche Bank to spend €13bn on tech amid massive job cuts
Deutsche Bank to spend €13bn on tech amid massive job cuts
Deutsche Bank has announced swingeing job cuts as part of a radical overhaul of its operations that will also see it spend €13bn on new technology over the next four years.
On Sunday, the bank’s chief executive Christian Sewing revealed that it will be shedding 18,000 jobs, equivalent to one fifth of its global workforce, in its latest attempt to restart the bank.
The plan will see Deutsche effectively exit most of its investment banking activity to focus on corporate and private banking and asset management instead. The end of equity trading and a siginificant scaling back of its fixed income operations will affect staff in New York, London and Asia-Pacific where a number of teams were let go on Monday morning.
In addition the bank is also looking to spin off more than €70bn worth of badly performing loans into a separate ‘bad bank’ as it looks to reverse its ailing fortunes and tarnised reputation after a series of heavy regulatory fines over recent years.
Despite the job cuts, Deutsche is looking to increase its IT budget, In a letter to employees, Sewing wrote that the bank would be investing €13 billion in technology by 2022 as part of an effort to increase both innovation and efficiency.
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".
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