According to reports, Germany-based Deutsche Bank AG (NYSE:DB) has revealed that they are set to layoff around 1000 employees in its home nation as part of a restructuring plan.
German’s leading lender said in a statement that it had already had consensus with its works councils on job cuts in Germany. That arrives on top of initial plans for 3,000 job losses announced back in June.
This will make a total number of role reductions in the country to around 4,000 which is part of 9,000 jobs being reduced globally to make the group “more competitive” as part of its new strategy, it said.
More than 50 percent off the most recent job cuts will hit the Deutsche Bank (DB)’s chief operating office, with the rest spread over several divisions.
The No 1 Lender in Germany has been under extreme pressure since mid-September, when US authorities said they wanted the firm to pay $14 billion to settle an investigation into mortgage-backed securities.
Following that, Deutsche Bank has been reassuring investors and staff that its finances are strong enough to handle such a large fine. Furthermore to bolster its finances, it has been selling assets and has promised cost cuts.
During the announcement of the latest job cuts, Karl von Rohr, a member of Deutsche Bank’s management board, said: “We consistently implement our strategy to make the bank more efficient.
“We will ensure that any staff reductions are carried out in a socially responsible manner.”
Meanwhile The Germany government has completely denied that it is planning a rescue for the nation’s biggest bank. However according to reports, the German government is holding talks with US authorities to help Deutsche Bank reach a settlement.
Plenty of Lenders have been punished over their actions in the US mortgage market in the run-up to the financial crisis of 2007.
Elsewhere it was reported recently that Deutsche Bank (NYSE:DB) is also looking to cut costs as it announced plans to lay off almost 5,800 workers in both Belgium and the Netherlands over the next five years.