Deutsche Bank to slash 1,900 jobs to save $3.67 billion

Tue Jul 31, 2012 8:15am EDT
 
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FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE: Quote) said it will slash 1,900 jobs in an effort to achieve cost savings of about 3 billion euros ($3.67 billion) as part of a broader strategic overhaul unveiled by the bank's new chiefs on Tuesday.

The bank will reduce headcount in corporate banking and securities by 1,500 and cut jobs mainly outside of Germany.

It comes in response to a slowdown in financial market activity.

The bank also said it is reviewing its compensation practices, in order to address both the absolute level of compensation and the relative balance between rewards for shareholders and those for employees.

Job cuts mark an about-turn for the German bank, which in April said it saw no need for layoffs at its investment bank.

Shares extended gains after the announcement and were up 2.3 percent at 25.42 euros by 8:10 a.m. EDT (1210 GMT), making them one of the biggest gainers on the STOXX Europe 600 Banks index, which was down 0.8 percent.

(Reporting By Edward Taylor and Arno Schuetze)

 
Anshu Jain (C) and Juergen Fitschen (L) designated co-successors of Josef Ackermann (R), outgoing CEO of Germany's largest business bank, Deutsche Bank AG pose for a picture prior to the bank's annual shareholders meeting in Frankfurt May 31, 2012. REUTERS/Alex Domanski