Germany's Deutsche Bank to cut 2,000 jobs and reduce branches

German bank Deutsche Bank plans to cut around 2,000 jobs this year as part of a broader strategy to reduce costs, reported dpa.

The bank also plans to further reduce the number of its branches, a move that follows a trend of downsizing in recent years.

Speaking at a conference organized by Morgan Stanley, chief executive Christian Sewing referred to the planned branch closures as involving a "significant number."

Sewing said that the costs associated with the job cuts had already been accounted for.

A spokesman for the bank confirmed that the closures of branches were part of previously announced measures, adding that there is no new savings programme being introduced.

Deutsche Bank has been shifting its focus toward digital banking, with plans to increase video and phone consultations for private customers.

Last September, the bank announced it would close a "medium double-digit number" of smaller branches as part of this strategy, entering into negotiations with the works council over the changes.

The bank currently employs around 90,000 people globally. In Germany alone, Deutsche Bank operates around 380 branches, with an additional 470 operated through its subsidiary, Postbank.

Earlier this year, Sewing announced a new restructuring initiative aimed at increasing efficiency through leaner hierarchies and enhanced use of artificial intelligence.

The bank expects the restructuring to improve its return on equity, targeting a figure of over 10% by 2025, up from 4.7% last year.

Deutsche Bank's financial performance in 2024 was below expectations, with a pre-tax profit of €5.3 billion — 7% lower than the previous year.