Deutsche Bank went on hiring spree while failing to deliver on costs

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Deutsche Bank made a three -year recruitment ball that reflected almost all sharp cuts of the jobs imposed by CEO Christian sewing at the beginning of his term, which confirms the size of the bank’s challenge to reduce costs.
The increase in employees has focused on the roles of the back office that does not generate revenues, and shows the financial Times analysis, even as the German lender invests billions of euros in information technology to help automate some of these jobs and the workflow.
The levels of enlarged employees were a difficult problem for Deutsche, which impeded the bank’s efforts to control costs. Although sewing has succeeded in reducing 2 percent of the costs of the bank that is not separated since the end of 2018-and increased revenue by 19 percent-it has abandoned cost pledges, has decreased or dropped five times since 2021, the last of which was last month.
At the beginning of the largest restructuring in the 2019 generation, sewing promised to shave 18,000 jobs of the bank’s powerful employees by 2022.
It was the lowest level of 83,000 at the end of 2021.
In the three years that followed, the number of non-retired employees increased by 11 percent, while the number of banquets of the front office remained fixed, as the total number of Deutsche employees reached nearly 90,000-close to the level at the beginning of the sewing original discounts.

The sprawling “infrastructure functions” of Deutsche Bank – which extends to human resources, operations, risks, compliance, legal, and communications – have grown to 58,000 employees at the end of last year, compared to 52,000 at the end of 2022.
Deutsche Bank reports since 2018 that the bank’s front office employees decreased by half during the sewing period to 32,000, while the number of rear office workers doubled to approximately 58,000.
The lender told FT that the annual disclosure of the job numbers before 2022 was “comparable” with the current that was revealed because it was “adapting the methodology several times over the intertwined years.” The previously calculated jobs as a front desk are now classified as a classification of the back office.
In Deutsche’s retail unit, which has closed 757 branches since 2018-the third of its global network-but is struggling with the repercussions of the integration of failed information technology, the rise in the employees of the back office since 2022 has been completely compensated for approximately 10 percent. FT analysis appears.
The bank FT told that the increase in the employees of the back office was partial as a result of “technology and controls”.
For years, she was struggling to reconcile with organizational scrutiny because of her compliance, monitoring of transactions and anti -money laundering controls. Deutsche also needed the additional workforce to work by accumulating the problems associated with the disturbed retail brand after the group systems.
An adult banker FT told that the internal workflow became very slow and exhausting. They said: “In some cases, you need more than 50 signatures only on a new seller.” Deutsche Bank opposes the number of signatures, saying that “two of the two signatories are often sufficient.”
The bank also said that it replaced external information technology contractors with expensive with its employees. While this has increased the number of people working directly by the bank, Deutsche said it was cheaper to employ at home.
In 2024, the bank reduced 3,500 jobs in the rear office and replaced 1,800 contractors, and its latest files. It rented 1,300 “technology specialists” and 400 revenue generating employees at the same time. The number of employees only decreased by 400, however.
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2025-02-18 05:00:00