EMCC European Monitoring Centre on Change

Deutsche Bank

Deutsche Bank

Geographic Location

Country: Germany


Sector: Financial services
Financial and insurance activities
64 - Financial service activities, except insurance and pension funding
Number Employed: 27330
Group: Deutsche Bank Group

Employment Effects

Announcement Date: 02-12-2004
Planned Job Reductions min: 2300
Planned Job Reductions max: 2720
Type of Restructuring: Internal restructuring
Foreseen End Date: 31-12-2006
Planned Job Creation: 800

Additional Information

Deutsche Bank AG plans to cut its workforce in Germany by some 7% (2,300 jobs) by 2007, the bank said on 2 December 2004. The company pushes ahead with a cost-cutting drive that could result in as many as 6,000 job losses worldwide. The move will affect employees at the bank's risk management, information technology, human resources and controlling departments, while jobs at its customer service will remain intact. The plan does not foresee forced lay-offs. In Addition to the 500 jobs being cut from its global banking unit in Germany, Deutsche Bank also said that 100 jobs would be cut in its Global Markets division, as a result of combining some of its processing, clearing and settlement activities. The bank, which employs 27,330 staff in Germany, said a further 50 jobs would go in other business units. A spokesperson said the effect of these cuts on front-line investment bankers in Germany would be ‘negligible’. Deutsche Bank said it would also be hiring for 350 new jobs at the bank's subsidiaries in Germany, taking the total net job losses to 1,920. At the same time, as part of its "investment programme" Deutsche Bank said it would hire 450 new staff in what it called "client facing and product oriented areas" over the same period. These new appointments will be balanced by 420 additional job losses through, among other things, outsourcing. On February 2005, Deutsche Bank has announced plans to cut 6,400 jobs worldwide (10 % of the total workforce). 2,720 jobs will be lost in Germany. Mid February 2005, the management and staff council of Deutsche Bank, were unable to reach an agreement regarding planned job cuts during talks. The staff council asked management by the end of January to abandon its plans to cut jobs in Germany. The bank had announced that it was planning to cut 2,720 jobs in Germany, despite having registered a net profit of €2.5 billion. The staff council says that the changes planned by the bank will be discussed over the next few weeks and that the main points of the employment and training initiatives will be agreed. A spokesman for Deutsche Bank refused to comment on whether all the details of the plan presented at the beginning of December 2004 would be implemented, and merely confirmed that the net number of job cuts in Germany would be 1,920.