Deutsche Bank CFO Discussed 10,000 More Job Cuts, Reuters Saysby
Deutsche Bank AG Chief Financial Officer Marcus Schenck told staff representatives last month that the German lender may need to cut an additional 10,000 jobs to lower costs, Reuters reported, citing a person it didn’t identify.
Schenck commented at an internal meeting and no decision has been taken, Reuters reported on Friday. Under Chief Executive Officer John Cryan’s restructuring plans announced last year, the lender is seeking to eliminate 9,000 jobs, including 4,000 positions in its home market. A spokesman for the Frankfurt-based lender declined to comment.
In a message to divisional chief operating officers on Wednesday, Deutsche Bank said hiring will be put on hold with immediate effect, people familiar with the matter have told Bloomberg News. The hiring freeze affects all divisions excluding some control functions, such as compliance, they said.
Deutsche Bank is under pressure to lower costs further amid increasing concern over mounting legal costs. While the U.S. Department of Justice last month requested $14 billion to settle a probe tied to residential mortgage-backed securities, Cryan has said he expects U.S. authorities to scale back their initial demand.
The CEO has signaled that the lender may have to deepen cost cuts.