Deutsche Bank is axing 1100 back office jobs under a restructuring programme that will see the German bank focus on boosting its retail business by opening 400 new branches in its core European markets over the next four years.
Deutsche Bank says it will expand its branch network in Italy and Poland as well as in Germany where 150 branches will be opened over the next four years. Over the same period the bank plans to create around 2500 advisory jobs in Germany and the other core European markets.
The moves are part of plans by Deutsche Bank to increase retail banking customers by about four million to 18 million and almost double pre-tax income at its retail unit from EUR1.1 billion in 2007 to EUR2 by 2012.
But the bank says "efficiency measures to bundle administrative activities and processes" will result in the Europe-wide back office cuts.
"As part of these plans, the bank intends to reduce the number of European back office jobs by around 1100," says the bank in a statement.
The ambitious retail growth targets will be boosted by the bank's acquisition last month of a 29.75% stake in Deutsche Postbank for EUR2.79 billion, with the option to take control of its rival later.
The drive to build up its retail division will make Deutsche Bank less reliant on investment banking, which has been hit hard by the credit crunch.
Rainer Neske, head, private & business clients, Deutsche Bank, says: "With this programme, we are creating the basis for sustainable and profitable growth."