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Friday, June 21, 2024

Germany. Deutsche Bank announced the layoffs of 800 employees

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Deutsche Bank has announced plans to lay off 800 employees as part of its austerity plan. Although the first quarter of this year reported a profit higher than expected, the bank points to an unstable period for financial companies as the reason.

The largest German bank made solid profits at a time when banks had to be bailed out in the United States and Switzerland. This turmoil caused panic among investors and withdrawals of money from banks by their customers.

Employment in the bank has been growing in recent quarters, so the announced layoffs mean a reversal of the trend. Christian Sewing, director of Deutsche Bank, when asked about the cuts, said “we need to speed up even more and that’s what we’re doing.”

According to the institution, the redundancies are to apply to the entire bank, but they will focus primarily on senior positions unrelated to customers. This is one of several measures taken by the bank to cut costs by €500 million over the next few years.

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Layoffs despite gains

The announcements of layoffs come as the bank posted profits for the last quarter – for the 11th time in a row. Although, as Reuters points out, these results were achieved thanks to income from higher education interest rates, which offset the decline in revenue at the investment bank. In a letter presented to employees, Sewing said “we have been working hard to achieve this stability”.

Net profit attributable to shareholders amounted to €1.158 billion in the first quarter. For comparison, a year earlier a profit of EUR 1.060 billion was generated and it was better than expected by analysts who expected a profit drop to approx. EUR 977 million.

At the end of the first quarter, Deutsche had 86,712 employees.

Main photo source: Shutterstock



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