Deutsche Bank is having a tough time of it since the green energy subsidy gravy train started to come off the rails.
Germany’s biggest lender, Deutsche Bank, has announced that it will cut 35,000 jobs through redundancies and the sale of businesses.
Long-term management board member Stefan Krause is leaving his post along with Colin Fan, co-head of the firm’s investment banking and trading unit.
Asset and wealth management division boss Michele Faissola and board member Stephan Leithner are also on their way out.
The Deutsche Bank says it plans to slash 9,000 full-time jobs and 6,000 contractor positions. It will also sell operations with 20,000 more workers and close local operations in 10 smaller countries.
By 2018, the cuts and disposals are to shrink the bank’s workforce from around 103,000 to 77,000.
The announcement came as the German lender reported a $6.6 billion quarterly net loss.
The loss, which the bank warned investors about this month, was primarily driven by a write-down after a decline in the paper value of its investment bank and the Postbank retail bank, as well as charges for regulatory investigations and litigation.
On Wednesday, the bank said it would scrap its dividend payment to investors for 2015 and 2016. Earlier this month, Deutsche Bank said it was planning to split its investment bank into two divisions.
The company’s corporate banking and securities (CBS) business will be split into a corporate and investment banking unit led by Jeff Urwin, who currently co-heads CBS with Fan, and a global markets business that will include sales and trading.
“Deutsche Bank has rarely undergone such a fundamental reorganization in its history. This also requires tough decisions,” said supervisory board chairman Paul Achleitner.
Deutsche Bank’s asset and wealth management is being split into a private wealth management division for high net worth individuals and a standalone Deutsche asset management for institutional clients.
The strategy reboot, called Strategy 2020 by Deutsche Bank, is the latest move by the lender this year to turn around its fortunes. Shareholders have complained the bank is too complicated and not profitable enough.