Deutsche Bank Layoffs 2024: What to Know About the Latest DB Job Cuts


  • Deutsche Bank (DB) just announced plans to lay off 3,500 workers.
  • These job cuts will primarily impact employees in non-client-facing roles.
  • The news comes after Deutsche reported stellar earnings for the fourth quarter of 2023.
Deutsche Bank layoffs - Deutsche Bank Layoffs 2024: What to Know About the Latest DB Job Cuts

Source: Barton

Deutsche Bank (NYSE:DB) is among today’s top trending stocks for multiple reasons. First off, the German banking giant recently reported impressive fourth-quarter earnings, blowing past Wall Street estimates. News of this profit smash has sent DB stock into the green today. On top of that, though, the company also just announced significant job cuts as part of its operational efficiency program.

Specifically, Deutsche Bank is planning to lay off 3,500 workers, amounting to roughly 4% of its global workforce. While this news has been overshadowed by the Q4 earnings report, the Deutsche Bank layoffs still warrant a closer look as the company prepares to turn a new corner.

Do the Deutsche Bank Layoffs Matter?

Plenty of other companies have announced job cuts recently and the banking sector has certainly not been immune. Fourth-quarter earnings reports showed that Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) laid off a combined total of 17,700 employees in 2023. That isn’t surprising, given the turbulent past year for the industry. Further, while the Deutsche Bank layoffs are the first jobs cuts from a major bank in 2024, leading fintech companies like PayPal (NASDAQ:PYPL) and Block (NYSE:SQ) have also announced workforce reductions.

Deutsche Bank’s recent job cuts are part of a $2.7 billion operational efficiency program. While the bank reported progress on this front, it also noted that a large portion of the program’s savings will stem from “simplified workflows and automation” and other “measures relating to infrastructure and technology efficiencies.”

Deutsche said the following in a statement:

“The vast majority of these measures are expected to be reflected in the adjusted cost run-rate in 2025. The measures are expected to lead to a reduction of approximately 3,500 roles, mainly in non-client-facing areas. The bank has set a goal for a quarterly run-rate of adjusted costs of € 5 billion and aims to operate with total costs of around € 20 billion in 2025.”

When a company slashes jobs, it’s typically done with the goal of spurring growth through cost-cutting. If Deutsche is correct in its cost-savings predictions, DB stock could also certainly rise in the coming year. With the recent Q4 earnings success, the company is definitely off to a good start.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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