Deutsche Bank has announced plans to cut approximately 2,000 jobs this year as part of a broader strategy to streamline operations and improve profitability in its retail banking division. The reductions will primarily affect positions within the bank’s branch network, including roles at both Deutsche Bank and its Postbank subsidiary. Most of the impacted roles are located in Germany, and the job cuts will span both front and back-office functions.
This move follows the closure of 125 branches last year, with additional closures expected in 2025. While the bank has not disclosed specific figures for future shutdowns, it confirmed that the reduction in physical locations is central to its plan to reshape retail operations. The bank is targeting an increase in return on tangible equity (ROTE) for its retail unit, aiming to move from 5.2 percent to the mid-teens within the next 18 to 24 months.
As part of the transition, Deutsche Bank is investing in remote advisory services, including video and phone-based consultations, to better meet the needs of digitally inclined customers. Some branches will be converted into private banking centers that cater to high-net-worth clients, reflecting the institution’s ongoing pivot toward a more digitally focused and personalized banking model.
Despite the restructuring, the bank maintains its overall profitability target of achieving a 10 percent ROTE across the group by the end of the year. The financial impact of the upcoming job reductions has already been accounted for in previous earnings reports, signaling the bank’s intent to manage the transition without disrupting its broader financial objectives.
The job cuts and branch closures are part of Deutsche Bank’s long-term plan to modernize its retail banking operations in response to evolving consumer behavior and increased competition from digital-only banks. By focusing on efficiency and digital transformation, the bank hopes to better position itself in an increasingly tech-driven financial services landscape.
This restructuring underscores the broader trend across the banking industry, where institutions are rethinking their physical footprint and workforce structures in response to shifting customer expectations and digital innovation.
