Through billions in profits with massive job cuts: Deutsche Bank will save 1.6 billion euros by 2025

Through billions in profits with massive job cuts: Deutsche Bank will save 1.6 billion euros by 2025

According to a report by web.de, Deutsche Bank plans to lay off several thousand employees by 2025, despite posting a record profit in 2023. CEO Christian Sewing announced that around 3,500 jobs will be lost by the end of next year, including the 800 job cuts announced in April.

The bank plans to cut positions primarily in areas that do not have direct contact with customers. This is intended to streamline sales networks in Germany and simplify and automate internal processes in order to save a further 1.6 billion euros. At the end of last year, the bank had 90,130 full-time positions worldwide, which will now be reduced as a result of the planned cuts. This move is surprising given the bank's financial performance, as it continues to report high profits despite a 16 percent drop in profits.

The planned layoffs of thousands of employees will undoubtedly have a significant impact on the labor market and the industry. Those working in the financial industry, in particular, should prepare for an increasingly competitive job market, as job cuts will leave many highly skilled professionals looking for new opportunities. In addition, Deutsche Bank's decision could also impact investor confidence in the company, particularly with regard to planned dividend payments and share buybacks.

The problems at the Group subsidiary Postbank and the subsidiary DWS, the IT conversion problems at the Group subsidiary Postbank and the subsidiary DWS, could also put a strain on the financial industry as a whole and lead to increased pressure on Deutsche Bank. It remains to be seen how the bank will respond to these challenges and what further impact this will have on the market.