Germany-based Deutsche Bank is set to lay off around 3,500 employees in a bid to cut costs after reporting weak profit in 2023. The company's profit fell over 16 per cent to $4.5 billion last year, with the Q4 witnessing a drop of over 30 per cent.
As per the bank's results, it spent over €566 million on restructuring and severance expenses in 2023. While profit saw a decline, revenue increased marginally by six per cent to €28.9 billion due to higher interest rates imposed by European Central Bank.
AFP reported that the bank employed over 85,000 people at the end of 2022. It will cut the jobs over the span of next two years. The bank was quoted as saying, “The measures are expected to lead to a reduction of approximately 3,500 roles, mainly in non-client-facing areas."
However, while things look gloomy for the employees, the shareholders are set to receive a dividend boost as the bank will give a dividend of €0.45 per share, which is 50 per cent hike from the dividend handed out in 2022.
The revenue target for 2025 has been set by the leadership. The bank is aiming for a revenue of €32 billion and it will try to limit its expenses at €20 billion.
The layoff wave has hit several US and European banks in the last one month. Citigroup announced that it plans to cut over 20,000 jobs by 2026 while Morgan Stanley and JP Morgan will cut 4,800 and 1,000 jobs, respectively. Moreover, Goldman Sachs has also decided to cut 3,200 jobs.