Deutsche Bank to issue update on IT overhaul - FT

Deutsche Bank to issue update on IT overhaul - FT

The executive charged with the job of overhauling Deutsche Bank's IT systems is due to give her first progress report this Friday, according to the Financial Times.

Kim Hammonds is expected to announce that so far 450 jobs have been axed and more than 500 applications have been removed as she sets about streamlining the bank's myriad of back-office systems.

Hammonds was promoted to the role of chief operating officer in October 2015 and given the task of standardising the German bank's trading technology amid criticisms that its messy IT infrastructure was partly to blame for its poor results, including a record €6.8bn loss in 2015.

A former executive at aviation firm Boeing, Hammonds previously referred to the bank's IT operations as akin to watching an airline send planes into the sky, watch them crash and then try and learn from the mistakes.

The cuts have focused on the bank's global markets unit which employs more than 6,000 staff in its back-office and more than 4,000 different systems. In addition to the bank's 2015 loss, it has also racked up more than €10bn in regulatory fines over the last three years.

Hammonds has also overseen a 33% reduction in the number of third-party service providers used by the bank to less than 57,000 companies and plans to reduce this by a further 50% next year, says the FT.

At the same time, Deutsche has also announced the hire of 100 new recruits to its equities trading teams with the focus being on front-office technology such as electronic trading.

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