Deutsche Bank to cut workforce by a quarter
According to Reuters, Germany’s largest bank, Deutsche Bank, may go ahead to implement a fresh restructuring plan by its new CEO John Cryan to lay off about 2300 workers. The main areas retrenchment is expected is regarding technology service and operations at the back office. The bank is set to take this bold and drastic move in an effort to improve its performance and enhance its ranking among global investment financial institutions whereby it is down at the bottom. The current distressful situation is associated with the bank’s stock prices have deteriorated badly and skyrocketing costs. The plan by Mr. Cryan will be presented this month so that it comes before other rival banks present their reform plans. An earlier report by Reuters had impacted Deutsche Bank’s share pricing positively to trade at increased price of 1%, making it a top gainer in the industry.
Deutsche Bank is determined to reduce its operating costs so that it can rejuvenate its operations in the banking industry. The article demonstrates how organizations can take drastic measures so that they get back to their feet. Laying off over 23000 workers is a lot too many, but it is a worthy sacrifice to help an established institution regain its position. Human capital management is one of the best strategies to reduce costs especially where salary and wage expenses are astronomical. As a financial manager, I have learnt that one should always have contingency plans or be able to take bold moves to re-establish a position in the industry. Deutsche Bank’s move, will possibly reignite interest from investors hence a positive improvement in the bank’s share indices.
By Thomas Atkins and Kathrin Jones; article retrieved from: http://www.reuters.com/article/2015/09/14/us-deutsche-bank-restructuring-idUSKCN0RE1GD20150914
Exclusive: Deutsche Bank to cut workforce by a quarter – sources| Reuters. (n.d.). Retrieved from http://www.reuters.com/article/2015/09/14/us-deutsche-bank-restructuring-idUSKCN0RE1GD20150914