Deutsche Bank is cutting 18,000 jobs around the world, as part of the biggest overhaul of the German lender’s once-mighty investment bank.
The planned overhaul will also see Deutsche Bank exit its equities business and post a 2.8 billion-euro ($3.1 billion) second-quarter loss to reverse a slide in profitability, Bloomberg reported. The restructuring will reportedly cost 7.4 billion euros ($8.3 billion).
“Today we have announced the most fundamental transformation of Deutsche Bank in decades,” Deutsche Bank chief executive officer Christian Sewing said in a statement. “We are tackling what is necessary to unleash our true potential.”
Bloomberg detailed key points of the plan and the bank’s financial estimates including cutting risk-weighted assets by about 40% in impacted businesses; plans to invest four billion euros in improving controls by 2022; and that no dividend to be paid for 2019, 2020.
The publication noted Sewig had few alternatives to bolster market confidence. His plan was reportedly approved by the board at a meeting on July 07.