Deutsche Bank announces large-scale 

restructuring: 20%layoffs, investment 

bank scale is reduced

Haizhuren website: from the network Tencent News2019-07-09

德银宣布大规模重组：裁员20％，投

行规模被缩减

海珠人网站：源自网络  腾讯新闻  2019-07-09

According to the IPO, as early as the news, on July 7,Deutsche Bank (hereinafter referred to as "Deutsche Bank") announcedthat it will restructure the structure on a large scale, including withdrawingfrom stock sales and trading business, reducing the size of investment banks,and reducing the sales of fixed income and trading business. Usage, etc. At thesame time, about 18,000 people are laid off globally, equivalent to 20% of thetotal number of employees, and the heads of investment banking, retail andcompliance departments are leaving. The restructuring cost is about 7.4 billioneuros.

According to media reports from Reuters, Deutsche Bankmay have up to 20,000 layoffs, and more than one-fifth of its 91,000 employeeswill be laid off. In this restructuring, Deutsche Bank said it will reduce itsglobal workforce to 74,000 by 2022.

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Although Deutsche Bank did not give a geographicaldistribution of layoffs, the bank's stock business is mainly concentrated inNew York and London. It is widely expected that Deutsche Bank will also lay offa large number of employees in Europe and the United States. Reuters reportedthat on Monday, Deutsche Bank has been dismissed from a bank in Sydney's officeand will return to the office to sign a layoff plan. In addition, a personfamiliar with the matter said that Deutsche Bank's layoffs will be carried outon a global scale, including its headquarters, Germany.

In addition to Europe, the United States and Germany,the layoffs will also affect the Asia-Pacific region. According to DeutscheBank's official website, Deutsche Bank has approximately 4,700 employees inmajor Asia Pacific offices such as Sydney, Tokyo, Hong Kong and Singapore. Aninformed senior Asian banker said that before the layoffs, Deutsche Bank'sinvestment banking team in the Asia-Pacific region has about 300 people, 10% to15% of which will be laid off, covering all stock trading departments. DeutscheBank is expected to stop offering cash stock trading, stock research and IPOunderwriting services in the region, and the margin loan business will beretained.

For many years, Deutsche Bank has been competing withmany internationally renowned investment banks in an attempt to become a majorinvestment bank on Wall Street. However, this restructuring plan indicates thatDeutsche Bank is accepting the fact that it has failed to keep up with the paceof Wall Street giants such as JPMorgan Chase and Goldman Sachs, and hasretreated in the investment banking business. Mainly in its abandonment ofglobal stock business, reduce investment banking business, and cut part of thefixed-income business - the field of solid revenue has been regarded as one ofDeutsche Bank's strengths. In addition, Deutsche Bank will establish a new Bad Bankto liquidate unwanted assets, a risk-weighted asset valued at 74 billion euros.

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When talking about the reasons for this restructuring,Deutsche Bank officially gave the reason to focus on more competitive areas.Deutsche Bank Chief Financial Officer Jamesvon Moltke said in an interview withCNBC in Frankfurt, "We are very confident that this will be the lastrestructuring of Deutsche Bank. Frankly, we are looking forward to all this andto focus on the core of our future. Business.” Deutsche Bank CEO Christian Sainsaid that this will be the most fundamental transformation of the bank indecades, which will help achieve stable income.

Deutsche Bank said it expects a loss of 2.8 billioneuros ($3.1 billion) in the second quarter of this year due to restructuringexpenses and full-year losses. In the past five years, Deutsche Bank hassuffered losses for four years, and its stock price fell to a record low lastmonth.

Founded in 1870, Deutsche Bank has long been a majorfinancing channel or advisory body for German companies seeking overseasexpansion or financing through bonds or stock markets. German governments havealso secretly supported Deutsche Bank. A sharp cut in its investment bank maymake it harder for Deutsche Bank to fulfill its long-term role in Germancompanies.