Deutsche Bank's finance chief told staff representatives last month that job cuts at the bank could be double that planned, a step that could remove 10,000 further employees, a person with direct knowledge of the matter told Reuters. Although no such decision has yet been taken, Marcus Schenck's remarks, at an internal meeting, signal the lender is considering further significant cost cuts, as it faces a multi-billion-euro fine and a crisis of confidence among investors.
"Schenck said that the bank would need to cut another 10,000 staff to bring down costs," said a person who attended the meeting with the chief financial officer, asking not to be named because of the sensitivity of the matter. Deutsche Bank declined to comment. Such cuts, if agreed, would likely take many years but setting such a goal could reassure investors that the bank is determined to tackle costs that sources said the European Central Bank sees as bloated.
If 10,000 job losses were ultimately to follow the 9,000 announced by management in October 2015, roughly one in five of the bank's workforce around the globe would be affected. Deutsche has been engulfed in crisis since news emerged last month of a US Department of Justice demand for a $14 billion settlement over the sale of toxic mortgage bonds before the global financial crisis. It is fighting the fine but could have to turn to investors for more money if it is imposed in full.
The discussion about further job cuts comes as Deutsche's chief executive, John Cryan, reassesses a year-old strategy to revive the flagging group, as ebbing market confidence sends its stock price tumbling and prompts some customers to withdraw funds. A second person familiar with these discussions said the management was also examining the countries where the bank was active to see "whether it was really worth its while (staying in those countries)".