German banking giant Deutsche Bank may be hoping to ramp up cost cuts even more aggressively under a new CEO.
The bank, which has struggled to recover from the 2008 financial crisis and underperformed compared to its U.S. peers, is considering a cut of 10,000 people from its workforce likely through 2019, the Wall Street Journal reports.
For context, Deutsche has about 10,300 workers in the U.S. alone. Bloomberg previously reported that the bank had already cut 400 U.S.-based employees as of late April, of a potential 1,000 based on sources with knowledge of the matter.
That comes amidst turmoil within the bank itself. Deutsche has not posted profits in three years—leading to the ouster of CEO John Cryan in April. Reflecting that performance, its stock has fallen roughly 55% since Cryan stepped on board, with investors questioning the bank’s strategy. That includes its continued attempts to go head-to-head with Wall Street titans in U.S. rate sales and trading. And while Cryan, too, led a reduction in headcount of about 4,000 over his three year tenure, it pales in comparison to what now CEO Christian Sewing may soon be overseeing over a two year period.
Aside from the potential 10,000 job cuts, Deutsche Bank is also seeking to reduce U.S. and Asia operations, focusing more on its home market and Europe.
“Deutsche Bank is deeply rooted in Europe – here we want to provide our clients access to global financing and treasury solutions. This is what we will focus on more decisively going forward,” Sewing said in a statement in April. “These reductions are painful but regrettably unavoidable to ensure our bank’s competitiveness in the long run.”
Meanwhile, in a signal to workers that yes, money is tight at Deutsche Bank, the company no longer allows fresh fruit orders within the bank, the Financial Times reports.
