Deutsche Bank to axe 18000 jobs

The headquarter of Deutsche Bank is seen next to a bus stop sign in Frankfurt Germany Sunday

Deutsche Bank to axe 18000 jobs

Deutsche Bank will cut 18,000 jobs over three years as part of a radical reorganisation of the German bank.

Sewing, however, said more cuts were needed to its ailing investment banking unit, which consumes most of the bank's capital and has been at the heart of various trials and fines for, among other offenses, money laundering.

Last week, the head of Deutsche's investment bank Garth Ritchie agreed to step down, marking a sign of the division's waning influence.

Including the charges related to the restructuring described above, Deutsche Bank expects to report a second quarter 2019 loss before income taxes of approximately Euro 500 million and a net loss of Euro 2.8 billion.

The pledge came after similar moves in 2018 that led to 6,000 job losses, and a failure to agree a merger with rival Commerzbank.

The bank said it would reduce headcount to 74,000 employees by 2022.

The Deutsche Bank headquarters are seen in Frankfurt, Germany October 29, 2015.

Christian Sewing, chief executive, said: '[This is] the most fundamental transformation of Deutsche Bank in decades.

According to the report, most of these operations are conducted in NY and London, with the latter Deutsche Bank's largest trading hub - with some 8,000 employees. The new division, to be lead by current transaction bank head Stefan Hoops, will be at the heart of the lender's future business model. The bank went three straight years without turning an annual profit before recording positive earnings of 341 million euros for 2018.

The Frankfurt-based lender expects to stop offering trading of cash equities, equities research and may no longer underwrite initial public offerings in the region, the person said, asking not to be identified as the matter is private.

Deutsche Bank said the combination would not make business sense, but that left open the question of what strategy the bank could pursue to make its business leaner and more profitable.

Deutsche Bank has taken multiple blows to its reputation over the past year, The Guardian report noted.

The company was hit hard by a financial crisis a decade ago.

Shares in the bank are down nearly 25% in the past year and hit a record low in June.

Deutsche Bank has been struggling for years with the decline of its investment bank and has made several attempts to revamp its business. That is far below levels from mid-2015, when the shares traded over 30 euros per share.

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