Reuters learned of possible new cuts at Deutsche Bank

Deutsche Bank may cut another 10 thousand people, said the Bank’s CFO Marcus Schenk in a closed meeting in September. About it reports Reuters, citing familiar with the situation of the person.

The decision has not been made, but Shenk noted that due to billions of dollars in fines and the crisis of confidence among investors, the Bank needs to cut costs. So, in September, the U.S. government sued Deutsche Bank demands payment of $14 billion in compensation for losses resulting from the mortgage crisis of 2008.

Actuation decisions on staff reductions will take years, but it can convince investors of the Bank’s focus on reducing costs, writes Reuters.

Discussion on possible new cuts is part of the plan of the head of Bank John krain to reform the management structure, which became known in the fall of 2015. Then, in October, Deutsche bank announced plans to lay off 9 thousand employees. If the reduction plan really will be doubled (i.e. will be dismissed to 19 thousand people), the work can lose almost every fifth employee of the Bank worldwide.

Another source Reuters, also familiar with the debate about the management of the Bank, said that Deutsche Bank’s checking the activity of branches of the Bank abroad, to decide “is this really worth it”.

At the end of September 2016, Deutsche Bank confirmed the sale of its UK insurance unit of the company Phoenix Group for $1.2 billion Cryan then expressed satisfaction with the agreement reached with Phoenix and noted that the transaction will strengthen the capital position Deutsche Bank.