Deutsche Bank has reached in a deal with its works council to shut 188 branches and cut 3000 staff in Germany. In 2015, the bank has announced that it would cut 9000 staff positions, of which 4000 would be in Germany. Deutsche Bank said it will first shed almost 3000 jobs in Germany, with 2500 in its retail unit, while talks with employee representatives about further cuts continue. This will leave Deutsche Bank with 535 branches in Germany. It will start closing down branches before the end of the year, with the bulk to be shut in the first half of 2017. The bank said it has invested up to 2 million euros ($2.3 million) each to refurbish 120 branches in recent years. Bank’s retail head Christian Sewing said the bank is meeting challenges of low interest rates, tougher regulation and especially a changed behavior of customers. The job cuts – which the bank hopes to carry out without forced redundancies – were needed to keep it competitive, Sewing said. While the bank is trimmingout its network within large cities and in rural areas where it sees little potential, it is stopping short of a broad pull-back from smaller towns. It is creating 140 jobs in its business with small and medium sized corporate clients, Germany’s famed Mittelstand, as well as 100 jobs in its private banking unit.
