In 2025, Deutsche Bank plans to lay off 2,000 employees and close more physical branches

Why It Matters Deutsche Bank's layoffs and branch reduction plan indicate a trend in the banking industry towards digital services, which will have a profound impact on fintech and retail banking business models. The bank's cost/income ratio is expected to decline significantly, reflecting its determination to enhance efficiency and control costs, which is an important indicator for investors to assess its financial health and stock performance. Background Story In response to the increasing demand for digital banking services and to reduce reliance on physical branches, Deutsche Bank continues to implement cost-cutting strategies, including closing branches and reducing staff, to improve operational efficiency and lower the cost-income ratio. In 2024, Deutsche Bank closed 125 branches, cut nearly 1,300 positions, and laid off 111 senior managers from its retail and wealth management divisions. Deutsche Bank has increased strategic investments in technology, controls, and regulatory remediation, hiring 1,300 technology experts in 2024. What Happened Deutsche Bank plans to cut nearly 2,000 retail banking positions and significantly reduce the number of branches by 2025. This plan involves both the Deutsche Bank and Postbank brands as part of achieving its year-end financial goals. Its CEO Christian Sewing announced this plan on March 19 at the Morgan Stanley Financial Conference, emphasizing that restructuring costs have been taken into account. Deutsche Bank expects its cost/income ratio to be below 65% by the end of 2025, significantly lower than the 76.3% at the end of 2024. What's Next Deutsche Bank's layoffs and branch reduction plan is expected to mark a new milestone in the company's digital transformation journey and enhance long-term cost efficiency. The anticipated decline in the cost/income ratio will help improve Deutsche Bank's financial performance and market competitiveness. Deutsche Bank will continue to focus on technology investments and revenue growth opportunities to support its business restructuring and market positioning. What They Are Saying Deutsche Bank CEO Christian Sewing: "We will again reduce the number of branches as planned this year, which is quite a significant number." "These layoffs reflect Deutsche Bank's ongoing efforts to streamline operations and achieve financial goals," Christian Sewing added, explaining the background and purpose of the layoff plan. Mentioned Stocks MS Morgan Stanley Concept Stocks Finance Retail Investment Management Asset Management Investment Banking Commercial Banking References Deutsche Bank to shed 2,000 retail banking jobs in 2025 Deutsche Bank Plans Workforce Reduction & Branch Closures in 2025