Deutsche Bank to slash over 7,000 jobs

Frankfurt: Germany´s largest lender Deutsche Bank said Thursday it will cut over 7,000 jobs and dramatically scale back its investment banking activities as it tries to turn the corner on years of losses.

"The number of full-time equivalent positions is expected to fall from just over 97,000 currently to well below 90,000. The associated personnel reductions are underway," a statement said.

A quarter of the jobs in its equities and sales trading business would be hit by the cuts, the bank said.

The jobs cull is the first big decision to be announced under new chief executive Christian Sewing, who unexpectedly replaced CEO John Cryan in early April. Sewing had already signalled he was planning a drastic shake-up of the bank´s cherished but trouble-plagued corporate and investment banking units in a bid to convince investors Deutsche is serious about returning to profitability.

As part of the revamp, Deutsche said it plans to reduce its leverage exposure by over 100 billion euros, or around 10 percent, with the majority of the reduction set to be achieved "by the end of this year".

"We remain committed to our corporate and investment bank and our international presence -- we are unwavering in that," Sewing said in the statement. "We are Europe´s alternative in the international financing and capital markets business. However, we must concentrate on what we truly do well."