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Deutsche Bank to lay off 3,500 employees

Deutsche Bank is set to cut 3,500 jobs in a bid to achieve significant operational cost reductions by 2025. The German investment bank revealed progress in its operational efficiency program for 2023, aiming for a 2.5 billion euros ($2.7 billion) cost reduction. While making headway toward this goal, the bank acknowledged the ongoing effort to save 1.6 billion euros ($1.7 billion) through measures like streamlined workflows and automation, particularly impacting non-client-facing roles.

CEO Christian Sewing expressed confidence in achieving the 2025 targets, citing strong capital generation enabling accelerated distributions to shareholders. This move follows the bank’s report of a profit before tax of 5.7 billion euros ($6.1 billion) in 2023, marking its highest level in 16 years. However, net profit experienced a 14% decline, reaching 4.9 billion euros ($5.3 billion).

Despite economic challenges, McKinsey & Co. reported positive trends for global financial institutions over the past 18 months. According to McKinsey’s Global Banking Annual Review, rising interest rates contributed to increased net interest margins, resulting in a boost of approximately $280 billion in the sector’s profits in 2022 alone.

In a similar vein, Citigroup recently announced job cuts, with plans to slash 20,000 positions earlier this month.

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