Deutsche Bank is cutting 3,500 jobs as it aims to shave off billions in operational costs by 2025.
On Thursday, the German investment bank announced that it made further progress on its operational efficiency program during 2023. The goal of the program is to cut costs by 2.5 billion euros, or about $2.7 billion.
While the bank made progress on this goal, it noted that it was still seeking to save 1.6 billion euros, or $1.7 billion. These savings will be driven by various measures "including simplified workflows and automation," the bank said.
It further noted that the specific roles that are being cut will "mainly" be in non-client-facing areas.
"Our strong capital generation enables us to accelerate distributions to shareholders. This gives us firm confidence that we will deliver on our 2025 targets," CEO Christian Sewing said.
The cuts come after the bank reported that its profit before tax in 2023 rose to 5.7 billion euros, or $6.1 billion, marking its highest profit before tax level in 16 years.
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Net profit fell 14% to 4.9 billion euros, or $5.3 billion.
Despite certain economic challenges, consulting firm McKinsey & Co. reported that the last 18 months have been relatively positive for global financial institutions.
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According to its Global Banking Annual Review, rising interest rates have boosted net interest margins and in turn, boosted the sector's profits by approximately $280 billion in 2022 alone.
Still, it's not the first major bank to announce job cuts in the new year. Earlier this month, Citigroup said it will slash 20,000 jobs.
