Deutsche Bank to slash thousands of jobs to control costs
Equities business is to be reduced by about 25 percent
24 May, 11:57Sewing on Thursday affirmed the bank's goal to hold costs to 23 billion euros this year and 22 billion euros next year. Deutsche Bank lost 735 million euros last year after U.S. tax changes cost it 1.4 billion euros. Earnings in the first quarter of 120 million euros were sharply down from the year-earlier quarter.
The announcement came hours before Board Chairman Paul Achleitner had to face disgruntled investors at the bank's annual shareholder meeting. The bank's share price has sagged and it paid only a small dividend of 11 euro cents per share last year. Addressing an audience of several thousands in Frankfurt, Achleitner said Cryan had "set the ball rolling for fundamental change" but later displayed "shortcomings in decision-making and implementation." "Dear shareholders, you are right to expect the bank and its management to hit the targets it has set itself," he said. "If there are signs those targets are in jeopardy... then we on the supervisory board have to act swiftly and decisively." The bank's troubles and the turmoil surrounding Cryan's departure have put pressure on Achleitner as well. Cryan was forced to publicly push back against a media report that Achleitner was looking for a replacement, then left to twist in the wind for days before being shown the door. Achleitner brought Cryan to the bank in 2015 and thus in principle shares responsibility for the bank's strategy and performance since then. Deutsche Bank shares were down 0.2 percent at 10.88 euros in midmorning trading in Europe. DAVID McHUGH/ (ANSA-AP).