Deutsche Bank is considering skipping more than a fifth in what is becoming the biggest makeover this year, say two people familiar with the case.
Lender under CEO Christian Sewing may decide to cut as many as 20,000 jobs when presenting his latest restructuring plan, perhaps as early as this week, the people said, and asked not to be identified as private. The decision has not been formally adopted yet, and the figure can still change, they said.
"Deutsche Bank is working on measures to accelerate the transformation to improve its sustainable profitability," a spokeswoman said via e-mail. "We will update all stakeholders if and when needed."
Sewing announced at the lender's ordinary general meeting in May, he is working on "tough" cuts after deciding to abandon merger negotiations with the domestic competitor Commerzbank AG in April. His previous turnaround plan, revealed shortly after taking over as CEO a little over a year ago, has failed to restore the bank to a healthy level of profitability.
At the end of the first quarter, Deutsche Bank had 91,500 employees, down from 95,400 when Sewing took over.
Participants in Deutsche Bank achieved as much as 3.5% in Frankfurt's trade in the midst of a broader share price in Europe and was 3.4% at 7 euros per share. 9:13. The Euro Stoxx 600 index was up 1.1%.
The bank expects to give a formal announcement no later than July 8, one person said. The Wall Street Journal first reported on the plan to cut as many as 20,000 jobs.
The sweeping restructuring is likely to hit Deutsche Bank's investment bank division the most difficult, especially the US business, as well as trading in stocks and interest rate derivatives, people who have known have said. The bank plans to cut its global share capital by 50%, they have said.
On Sunday, Reuters reported that the lender appears to employ 300 people globally for its asset management work by 2021. It plans to hire these leaders across Europe, America, and emerging markets, according to the report quoting Fabrizio Campelli, global leader of wealth management.
Deutsche Bank will also make changes to the board, with investment bank manager Garth Ritchie, Chief Regulatory Officer Sylvie Matherat and CFO James von Moltke, who can all leave, have known the case. Sewing will probably take over formal supervision of the investment bank at board level, they say.
Deutsche Bank also plans to set up an entity for assets such as long-term interest rate derivatives that it wants to knock down or sell in an effort to cut unprofitable business and free up capital for other business areas, people have known. The unit can hold as much as 50 billion euros (57 billion) in risk-weighted assets, they said. It had RWA 347 billion at the end of the first quarter.