This bank announced major layoffs, 3,500 people will lose their jobs due to reduced profits.

Companies around the world are firing employees to reduce their expenses and increase profit margins. In this series, Germany’s largest Deutsche Bank has also announced layoffs. The bank said on February 1 it would cut 3,500 jobs over the next year to reduce expenses by 2.5 billion euros ($2.7 billion) and boost profits. The bank said that there has been a significant decline in its profits in 2023 and that is why the bank is going to lay off 3,500 employees.

There will be cuts in these jobs

The bank said it will try to streamline its marketing network and computer systems and software as it wants to reduce expenses. There will be cuts in those jobs which do not involve direct dealing with customers.

Last year there was 16 percent less profit

This announcement has been made immediately after the release of the annual profit figures of the bank. Figures show that the bank earned a profit of 4.2 billion euros ($4.5 billion) last year, which is 16 percent less than in 2022. However, this was the fourth consecutive year in which the bank earned profit.

Bank CEO praised the performance

In this context, the bank’s CEO Christian Sewing praised the bank’s performance even in difficult times. He said that we expanded the business and showed everyone that our bank is continuously earning profits. Like other banks, this bank has also benefited from the increase in global interest rates. Revenue increased by 6.8% to 28.9 billion euros. The company announced it was increasing its dividend from 30 cents per share to 45 euro cents per share and would buy back 675 million euros worth of shares from shareholders by the end of June.