3,500 jobs gone: Deutsche Bank is going for mass layoffs

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The German economy cannot calm down. Deutsche Bank reported that there was a significant decrease in profits and accordingly plans to lay off approximately 3,500 people by the end of 2025.

It is about ensuring “operational efficiency”. And on “cost discipline in ongoing investments”.

Deutsche Bank employs approximately 600 people in Zurich and Geneva, Switzerland. It is unclear at this time whether staff there will also be affected.

Actually a good job

Despite better business, Deutsche Bank earned less last year than the year before. According to the statement made by Germany’s largest financial institution in Frankfurt on Thursday, net profit attributable to shareholders decreased by 16 percent to 4.2 billion euros. Last year, the bank benefited from a one-time tax credit.

Last year, the institute achieved its highest pre-tax profit in the last 16 years, at around 5.7 billion euros. CEO Christian Sewing therefore drew a positive conclusion from the last financial year: The bank grew more strongly than planned. The group’s revenue, i.e. its total income, increased by 6 percent to around 28.9 billion euros. By 2025, this figure is expected to rise to around 32 billion, which is more than previously planned.

Shareholder benefit

Shareholders should benefit from this positive development: The dividend will be increased to 45 cents per share, from 30 cents in the previous year. It wants to return another 675 million euros to shareholders through share buybacks by the end of June. The board of directors targets a dividend of 1 euro per share for the 2025 financial year.

In 2022 as a whole, billions of dollars of one-off tax credits linked to US businesses gave the institute its highest profit in 15 years: after deducting interest payments to holders of subordinated bonds, the result was just over 5 billion euros. The board had targeted further increases for 2023, at least before taxes. (SDA/rae)

Source :Blick