Deutsche Bank cuts costs, eliminates 3,500 jobs

(Patria) - Germany's largest bank, Deutsche Bank, has announced plans to eliminate 3,500 jobs as part of a major cost-cutting effort following a drop in net profit in 2023.

The group reported net profit attributable to shareholders of 4.2 billion euros, a 16 percent drop from the previous year when profit was boosted by one-off tax relief.

Costs associated with the company's savings and performance program also impacted net profit, with Deutsche Bank spending 566 million euros on restructuring costs and severance pay.

Revenues, however, jumped six percent year-on-year to 28.9 billion euros, thanks to higher interest rates from the European Central Bank.

CEO Christian Sewing praised the bank's performance in an "uncertain environment" and noted that Deutsche Bank achieved a pre-tax profit of almost 5.7 billion euros, the highest in "16 years".

The group also maintained its focus on cost discipline, he said, as Deutsche Bank progresses with a 2.5 billion euro performance-driven shift aimed at improving profitability.

As part of these efforts, Deutsche Bank announced it plans to eliminate around 3,500 jobs over the next two years, "mainly in non-client-facing areas," AFP reports.

The bank employed around 85,000 people worldwide in 2022.

The bank also unveiled new targets for 2025, saying it will aim to achieve revenues of 32 billion euros and operate with total costs of around 20 billion euros.