Deutsche Bank AG is restarting job cuts while top management have renounced a month’s pay as Chief Executive Officer Christian Sewing strives to beat his own cost targets.
“We decided to further accelerate our cost reduction program,” Sewing said in remarks prepared for the lender’s annual general meeting next week and released late Tuesday.
Sewing said the bank is resuming talks about staff reductions that were put on hold in March to avoid hardship for employees at the height of the coronavirus pandemic. The cuts form part of restructuring efforts unveiled by the CEO last year.
The bank is sticking to its financial targets for 2022, Sewing said. Deutsche Bank said last month that credit provisions will continue to rise this quarter after a surge during the first three months of the year, while revenue will grow less strongly than previously thought.
Sewing also hinted at deal-making to come, saying the bank’s global scale and relative strength “is something that will help us when consolidation in the European banking sector happens –- as it inevitably will and must.”
Deutsche Bank’s global management committee is forgoing a month’s pay, Sewing said, making them the latest senior bankers around Europe to take a cut as regulators urge restraint as they deal with the pandemic. Bloomberg previously reported Deutsche Bank was considering changes to top pay.
Germany’s largest lender is in the throes of a massive restructuring effort that aims to return it to profitability after five consecutive annual losses. As part of that plan, Sewing has vowed to cut 20% of the workforce and he has pulled out of equities trading.