According to reports, Deutsche Bank plans to cut 10,000 jobs as part of a cost-cutting owing to the setback of key markets. According to the Wall Street Journal, the German financial giant, struggling to survive, had planned to cut 5,000 jobs earlier this year but feared it would not have much impact on investors.
But the 10,000 cuts currently planned represent about one in ten workers and accelerate cost reduction measures.
The cuts also occur when the bank plans to withdraw from a series of equities around the globe. Sources said earlier this month that the bank would drastically reduce its presence in the United States, and has also begun to reduce its involvement in Central Europe, Africa, and the Middle East.
The bank is also pressurized by credit rating agencies along with Standard & Poor’s which says it will lower the bank’s rating by the end of the month. It had also placed Deutsche Bank on “credit watch” in April.
Senior executives and the bank’s supervisory board will have to explain the company’s poor performance at its annual meeting of shareholders in Frankfurt on Thursday.
Among the controversial issues that will be discussed, there will also be a proposal to divide the company.
The management is also going through a shift. In April, John Cryan, CEO also had to leave, though he had more two years remaining as per the contract. He arrived just two weeks after writing a public memo in which he told company officials he was “absolutely committed” to his work.
Instead of assisting, the company’s supervisory board dismissed Cryan and replaced with Christian Beewing, an employee of Deutsche Bank.
The company was also dragged into the ongoing investigation into the alleged Russian interference in the US elections. Last December, special advocate Robert Mueller issued a subpoena to the largest lender in Germany, forcing him to file documents on his relationship with President Donald Trump and his family.