Deutsche Bank is shutting 188 of its German branches and cutting around 3000 jobs as it doubles down on its digital overhaul strategy.
By the end of next year, Deutsche Bank will reduce the number of branches in its home market from 723 to 535 larger sites, says the firm.
The closures will contribute the bulk of 3000 job cuts in Germany. More losses are likely, with the bank saying that it is in talks with employee representatives regarding other divisions and infrastructure units in Germany.
Meanwhile, the bank has reiterated that it plans to spend around EUR750 million by 2020 on boosting digital products and advisory services as it seeks to adapt to changing customer demands.
For a clear majority of people under 30, digital services have become the most important factor in choosing a bank, says a statement, while 60% of customers today want their access to Deutsche Bank to be flexible.
Although vowing to become more digital, plans to set up a digital banking service in the US, led by former chief operating officer Henry Ritchotte, were recently scrapped.
In a message on the job losses posted on the Deutsche Bank site, CEO John Cryan says: "This reduction has been and will be distressing given the impact on individuals, and is something my Management Board colleagues and I regret very much.
"This has not been an easy decision for us. However, we have to bring down costs while also reorganising how we work. If we do not, Deutsche Bank will be unable to operate profitably or sustainably in an environment of low interest rates and increasingly strict regulation."