As part of its objective to achieve 500 million euros ($552 million) in additional cost savings, Deutsche Bank AG is set to lay off approximately 800 senior back-office personnel.
CEO Christian Sewing announced that the bank will reduce senior non-client-facing staff by about 5%, following the increase in the cost-cutting target to 2.5 billion euros. Sewing made the announcement during a call with reporters discussing the bank’s first-quarter results.
As the trading boom of recent years fades and Europe moves away from negative interest rates, CEO Christian Sewing is increasingly relying on Deutsche Bank’s corporate and private bank to spur growth. Despite reducing back-office personnel, Sewing is also implementing targeted hiring initiatives for the corporate bank, investment bank, and wealth management division.
On Thursday, Chief Financial Officer James von Moltke stated that the bank recognizes the potential to expand its wealth management business, owing to the aftermath of the Credit Suisse Group AG crisis.