Germany’s struggling Deutsche Bank says it will cut 18,000 jobs by 2022 in a sweeping restructuring aimed at restoring consistent profitability and improving returns to its shareholders.
The Frankfurt-headquartered bank said Sunday it would drop its stock sales and trading unit as part of a plan to exit more volatile investment banking activities.
It says it will also bundle €74 billion ($108 billion Cdn) of assets into a separate unit for disposal, freeing capital reserves to pay for the restructuring.
The job cuts would reduce the workforce to 74,000. The restructuring intends to take out €6 billion ($8.8 billion Cdn) in costs.
Deutsche Bank has struggled with regulatory penalties and fines, weak profits, high costs and a falling share price.
In May, CEO Christian Sewing told shareholders he was ready to make “tough cuts” to improve the struggling bank’s profitability and to raise a “disappointing” share price.
The pledge came after Deutsche failed to agree a merger with rival Commerzbank.
Deutsche Bank says its focus going forward will be on corporate banking, foreign exchange, deals including equity and debt capital markets as well as mergers and acquisitions, private banking and asset management.