Mr Sewing called time on the days of "spectacular" ambition in investment banking on Monday morning, a day after unveiling a much more radical than expected overhaul as he battled to get investors and analysts on side.
Now, it is moving away from the aim of taking on Wall Street's giants, scrapping its global equities business and cutting some operations in its fixed income division.
In later trading on Monday in Frankfurt, the shares were down 2.4%, to 6.99 euros.
Christian Sewing, chief executive, said: '[This is] the most fundamental transformation of Deutsche Bank in decades.
"I guess (the early gain) was a knee-jerk reaction on the stock being up 5% plus, but as people digest the details, then it is hard to get AT1 support", said Steve Hussey, head of financial institutions credit research at Alliance Bernstein. The bank went three straight years without turning an annual profit before recording positive earnings of 341 million euros for 2018.
"We are creating a bank that will be more profitable, leaner, more innovative and more resilient", Sewing wrote in a note to staff.
Deutsche Bank gave no breakdown for the cuts, but said they would be spread around the globe, including in Germany.
Deutsche will also set up a new so-called "bad bank" to wind down unwanted assets, with a value of 74b euros ($A119b) of risk-weighted assets.
Its investment banking team for the Asia-Pacific region numbered about 300 people before the cuts, and 10 percent to 15 percent will be laid off - nearly all in its equity capital markets division, according to a senior Asia banker with direct knowledge of the plans.
The reorganisation of the business follows the failure of merger talks with rival Commerzbank in April.
Deutsch Bank paid billions in fines and settlements related to behavior before and after the global financial crisis, including a $7.2 billion settlement in 2017 with the U.S. Justice Department over selling bonds based on mortgages to people with shaky credit.
"The job market in equities is going to be very tough", said George Kuznetsov head of research and analytics at Coalition, which analyzes the investment banking industry.
Employees of Deutsche Bank's private and corporate customer bank would still be protected against dismissal until mid-2021, according to an agreement reached between the trade unions ver.di, the association of German bank employees (DBV) and Deutsche Bank in 2017. So far this year, it ranks eighth regionally for M&A activity.
To reflect on the "significant challenges" facing Deutsche Bank, however, the agency maintained a negative outlook for it and is threatening to downgrade the current A3 rating.
'If you have a job for me please let me know. One source said staff could be seen saying their goodbyes to colleagues upon leaving the cafeteria.