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Deutsche Bank to close branches; move to hybrid working model

Deutsche Bank to close branches; move to hybrid working model

As the pandemic continues to change both customer and staff behaviour, Deutsche Bank will close 150 branches this year and let employees work from home for up to three days a week once offices reopen.

In a message to staff, CEO Christian Sewing says that many clients are coming to branches less often and opting instead for digital products such as remote advisory video sessions.

As a result, 150 Deutsche Bank and Postbank branches will close in 2021, with a further 50 Postbank branches going in 2022, costing more than 1200 jobs.

The branch closure news comes as Deutsche reports its best quarterly profit for seven years. The bank booked a EUR908 million profit for the first quarter on revenues of €7.2 billion.

Meanwhile, according to Business Insider, the bank is planning to introduce a hybrid model that will see staff given the option to work remotely for up to three days a week. The move is likely to prove popular with employees, 90% of which backed it in a survey.

Last May, the bank made clear that it viewed Covid-19 as a cost-cutting opportunity, noting that home working and video-conferencing could be a money saver.

The branch closures also come in the context of a 2019 plan to shed 18,000 jobs, equivalent to one fifth of the global workforce, and invest €13 billion on new technology over the next four years.

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