FRANKFURT, Germany (AP) - Deutsche Bank says it is cutting 35,000 jobs through redundancies and the sale of businesses as new CEO John Cryan seeks to make Germany's biggest lender more manageable and profitable.
FRANKFURT, Germany (AP) — Deutsche Bank says it is cutting 35,000 jobs through redundancies and the sale of businesses as new CEO John Cryan seeks to make Germany's biggest lender more manageable and profitable.
The bank will slash 9,000 full-time jobs, 6,000 contractor positions and sell operations with 20,000 more workers. It will also close local operations in 10 smaller countries.
The announcement came Thursday as the bank reported a net loss of 6 billion euros ($6.6 billion). Net profit was hit by 5.8 billion euros in noncash charges for the reduced value of its investment bank and retail bank Postbank, which it plans to sell.
Cryan said at a news conference that the bank faced "hard decisions" as he restructures it.
"We must reduce Deutsche Bank's complexity," he said.
The bank has struggled to reduce costs and make its administration more transparent and ethical as it deals with uneven profits and investigations into rigging financial benchmarks. Former co-CEO Anshu Jain resigned in June. The other co-CEO, Juergen Fitschen is leaving in May.
Cryan warned that "there will be consequences on compensation" when he was asked about the impact on executive bonuses but said he could not yet quantify them.
He said it would be "unacceptable not to share some of the costs that we have suffered" as a "consequence of poor historic behavior." The bank has set aside billions to pay for fines and legal settements and consts in a several cases, including the rigging by a number of banks of the key interest rate benchmark known as the London Interbank Offered Rate, or Libor.
The bank said it would close its onshore operations in Argentina, Chile, Mexico, Peru, Uruguay, Denmark, Finland, Norway, Malta and New Zealand. Some branches in Germany would close as well, Cryan said.