\n
The reason for the huge hacking back of jobs comes from a massive reorganisation, which aims to reduce the global workforce of the bank to 74,000 by 2022. It\u2019s a major undertaking that will cost the German bank \u20ac7.4 billion. The goal, according to Christian Sewing, the Chief Executive, is \u201crefocusing the bank around our clients\u201d. He added that \u201cwe are returning to our roots and to what once made us one of the leading banks in the world.\u201d. The restructure is hoped to save the bank \u20ac17bn by 2022.<\/p>\n
Share trading is the department to be hit the hardest, with jobs in the UK and US branches of the company the first to be on the receiving end of the chop.<\/p>\n<\/div>\n
![\"Reorganisation\"](\"\/explore\/wp-content\/uploads\/2019\/07\/photo_2019-10-09_14-57-04-1024x638.jpg\")
<\/div>\n<\/div>\n<\/p>\n
\u00a0<\/i> What Caused the Cuts?<\/h2>\n
\n
Deutsche Bank is no stranger to difficulty, and anyone following the bank\u2019s progress over the years will already know that they\u2019ve had trouble returning to the profitability of pre-2007 crash levels.<\/p>\n
The bank has been fined a total of \u20ac9.5 billion in recent years, a large majority of which was for deliberate mis-selling of mortgages and money laundering. These aren\u2019t the only problems the bank has faced. There are current allegations of share trading schemes and off-shore tax avoidance, as well as a police raid at their German HQ last year, none of which has helped Deutsche\u2019s image.<\/p>\n
Additionally, the bank\u2019s attempted merger with Commerzbank, the other German banking goliath, ended in failure. Both parties agreed there weren\u2019t enough benefits to be made, citing increased costs and risks which outweighed any potential gains. This left Duetsch with few other options than to try and downsize.<\/p>\n
It\u2019s worth noting that a lot of the bank\u2019s problems have come from it\u2019s investment arm, so it could be speculated that these cuts are also a way of limiting any potential for future fines, or stock damaging negative publicity. The investment banking division was originally added in the late 1980\u2019s, as Deutsch was keen to get involved in the then booming capital markets. Removing this division also fits with Christian Sewing\u2019s vision of the bank returning to its foundations. Whether this will prove to be successful, only time will tell.<\/p>\n
<\/p>\n
\u00a0<\/i> Banking Future<\/h2>\n
\n
It\u2019s not just Deutsche Bank that are sailing through troubled waters. The very reason Commerzbank entered into negotiations for a merger in the first place was due to struggles to maintain profitability.<\/p>\n
One major factor that can\u2019t be ignored is the increasing incorporation of highly cost effective AI and software solutions, especially in the financial sector in general. Before his departure, previous Deutsche Bank CEO John Cryan pointed this out, saying that thousands of employees at the bank could be replaced by automated procedures.<\/p>\n
While manual process is clearly not the only reason for the Deutsche Bank\u2019s difficulty and need to reorganise, it\u2019s likely to have been a major consideration.<\/p>\n
It\u2019s also very possible that we\u2019ll see more trends of this type in the banking industry going forward, with more openings for software development and engineering roles as opposed to traditional banking opportunities.<\/p>\n","protected":false},"excerpt":{"rendered":"
One of the biggest employers in the City of London, Deutsche Bank recently announced that it will cut 18,000 jobs as part of a corporate …<\/p>\n","protected":false},"author":3,"featured_media":419,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[12,8],"tags":[],"class_list":["post-152","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/joblookup.com\/explore\/wp-json\/wp\/v2\/posts\/152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/joblookup.com\/explore\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/joblookup.com\/explore\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/joblookup.com\/explore\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/joblookup.com\/explore\/wp-json\/wp\/v2\/comments?post=152"}],"version-history":[{"count":7,"href":"https:\/\/joblookup.com\/explore\/wp-json\/wp\/v2\/posts\/152\/revisions"}],"predecessor-version":[{"id":1485,"href":"https:\/\/joblookup.com\/explore\/wp-json\/wp\/v2\/posts\/152\/revisions\/1485"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/joblookup.com\/explore\/wp-json\/wp\/v2\/media\/419"}],"wp:attachment":[{"href":"https:\/\/joblookup.com\/explore\/wp-json\/wp\/v2\/media?parent=152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/joblookup.com\/explore\/wp-json\/wp\/v2\/categories?post=152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/joblookup.com\/explore\/wp-json\/wp\/v2\/tags?post=152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}