Deutsche Bank used to be one of the biggest banks in the world, and after a while, it decided to enter the world of high finance by expanding aggressively into new markets in the United States, United Kingdom, and Asia. It seemed like a sound strategy for Germany’s biggest bank, but then the 2008 financial crisis hit and Deutsche found itself in a precarious position. Although the bank survived, it has never been the same since and over the years, it has struggled massively with issues related to profitability and investor returns.
Earlier this year, the German government tried to broker a merger with rival Commerzbank, but the deal did not materialize after the initial round of talks. However, it has now emerged that Deutsche Bank has decided to go on a massive restructuring initiative that is aimed at changing the very way in the bank operates. That being said, the restructuring is going to cost the bank a whopping 5 billion Euros, according to sources which are close to the developments. This particular restructuring plan is going to be far more extensive and is expected to shake up the bank from within as it tries to claw back its place among the strongest banks in the world.
The whole thing could commence within a few days, and sources believe that Deutsche Bank is going to be especially ruthless on its investment banking business. The Chief Executive Officer of Deutsche Bank Christopher Sewing had spoken to the shareholders back in May, and at the time, he had said that there were going to be ‘tough cutbacks’ to the investment banking business. It is believed that he is now going to make good on his promise in his efforts to turn one of the world’s most well-known financial behemoths around. In addition to that, around 15000 to 20000 jobs could be made redundant as part of this restructuring process, and it is a particularly big number, considering the fact that Deutsche currently employs 91,500 people. However, one source added that the majority of the job cuts are going to take place in the overseas offices.