Deutsche Bank likely to cut costs by axing thousands of jobs and consultants

Cut costs

'The key is to cut costs'.

Bloomberg News reports that Deutsche Bank co-CEO John Cryan will probably cut jobs and close branches to succeed where his predecessors failed and reduce expenses by a net $2.8bn, according to analysts at JPMorgan.

Eliminating 10,000 jobs could save a net $1.4bn in compensation costs while eliminating one third of an estimated 30,000 external consultants and closing about 200 branches would help cut expenses by $1.3bn, the analysts wrote in a report Monday.

The bank’s efficiency plan has thus far failed to achieve a net reduction in expenses as spending on regulatory and compliance requirements wiped Deutsche Bank’s savings.

'Deutsche Bank’s cost management has been poor historically', JPMorgan analysts Kian Abouhossein and Amit Ranjan, who have an overweight recommendation on the stock, wrote in the report. 'Management should focus on creating shareholder value by growing retained earnings and the key is to cut costs'.

To access the complete Bloomberg News article hit the link below:

Cryan May Aim for $2.8 Billion in Net Cost Cuts, JPMorgan Says

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