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July 7, 2019, 12:25 p.m. EDT

Deutsche Bank to slash 18,000 jobs, exit trading, in ‘most fundamental transformation’ in decades, says CEO

Bank will post a net loss of €2.8 billion, or $3.14 billion

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By Associated Press


Getty Images
The twin-towered Deutsche Bank headquarters in Frankfurt.

Germany’s struggling Deutsche Bank says it will cut 18,000 jobs by 2022 in a sweeping restructuring aimed at restoring consistent profitability and improving returns to its shareholders.

The Frankfurt-headquartered bank said Sunday it would drop its stock sales and trading unit as part of a plan to exit more volatile investment banking activities.

It says it will also bundle 74 billion euros of assets, or $83 billion, into a separate unit for disposal, freeing capital reserves to pay for the restructuring.

The troubled lender also said it would sell its electronic equities and prime finance businesses to Paris-based bank BNP Paribas /zigman2/quotes/203020019/delayed XE:BNP -2.79% , according to Paul Clarke of MarketWatch affiliate Financial News .

“Today we have announced the most fundamental transformation of Deutsche Bank in decades,” wrote Christian Sewing, chief executive officer at Deutsche Bank, in a written statement.

The job cuts would reduce the workforce to 74,000. The restructuring intends to take out 6 billion euros in costs.

Deutsche Bank /zigman2/quotes/207242873/delayed XE:DBK -2.72% has struggled with regulatory penalties and fines, weak profits, high costs and a falling share price.

MarketWatch markets editor Mark DeCambre contributed to this report.

/zigman2/quotes/203020019/delayed
XE : Germany: Xetra
31.00
-0.89 -2.79%
Volume: 9,293
Sept. 29, 2020 6:30p
P/E Ratio
5.59
Dividend Yield
0.00%
Market Cap
€39.70 billion
Rev. per Employee
€456,254
loading...
/zigman2/quotes/207242873/delayed
XE : Germany: Xetra
7.07
-0.20 -2.72%
Volume: 7.36M
Sept. 29, 2020 6:30p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€14.96 billion
Rev. per Employee
€417,912
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