Deutsche Bank is cutting jobs too, just not the banking & trading MDs it hired

efinancialcareers.com:

Deutsche Bank isdoing a Citi. After cutting €200m in costs last year, removing 3,500 jobs from across the bank and getting 75% of the way through its program of «operational efficiencies,» it plans to cut another €300m in costs this year. It will do so, in part, by cutting managers. 

Get Morning Coffee  ☕  in your inbox. Sign up here.

Speaking today, Deutsche Bank CEO Christian Sewing said the «clear intention» is to «operate the bank with lower headcount.» The plan in 2025 is, «to actively reduce management layers and roles, and integrate teams as part of our workforce optimization initiatives, in particular scrutinizing those areas where we do not see the required efficiency improvements,» Sewing added.

Citi has also reduced management layers and is now moving on to cutting inefficient middle and back office staff. HSBC has cut management layers too, and is now moving on to cutting entire areas of its investment bank. 

Although it's open to cutting underperforming units, Deutsche Bank is not following HSBC, though. While HSBC is cutting revenue generators, Deutsche Bank is still adding them. Sewing said today that Deutsche Bank added «400 targeted revenue generating» roles across the bank last year, even though 51 front office jobs in its investment bank were quietly cut in the final quarter. 

Deutsche Bank's enthusiasm for its bankers and traders comes after a fine 2024. As the charts below show, the bank's M&A and equitycapital markets bankers outperformed rivals. They also did so in both the full year and the fourth quarter, when bonuses are contemplated. In fixed income currencies and commodities trading, revenues ended the year 26% up. Deutsche Bank had its best Q4 for fixed income trading ever, even though risk