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Deutsche Bank Plans Workforce Reduction & Branch Closures in 2025

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In an attempt to mitigate costs, Deutsche Bank (DB - Free Report) is planning to slash nearly 2000 headcount of its retail bank in 2025 with a "significant" reduction in the number of branches, chief executive officer Christian Sewing stated at a Morgan Stanley financial conference held on March 19, 2025.

"We will reduce again branches like we had planned this year in quite a significant number," Sewing mentioned at a conference, adding the cuts would come at both Deutsche Bank and Postbank brands. The bank already factored in the restructuring costs for the jobs, Sewing added.

The job cuts reflect a continuation of Deutsche Bank’s efforts to streamline operations and achieve financial targets by the end of the year. The optimization initiatives by DB signal an ongoing shift toward digital banking services and a reduced reliance on physical branches.

Deutsche Bank’s Efforts to Reduce Costs

The bank is executing cost-cutting efforts, including branch closures and headcount reductions, aiming to enhance efficiency and reduce the cost-to-income ratio, with a key focus on the retail and private wealth unit.

In November 2024, Deutsche Bank laid off 111 senior managers, in particular, directors and managing directors, from its retail and wealth management unit. Overall, in 2024, the company closed 125 branches and slashed nearly 1300 headcount.

The bank is also expanding its strategic investments into technology, controls and regulatory remediation. In 2024, DB hired 1,300 technology specialists and added 400 targeted revenue-generating roles, supporting long-term cost improvement and growth.

These moves come as the bank intensifies its cost-cutting initiatives to reduce its cost-to-income ratio. DB expects to end 2025 with a cost/income ratio of below 65% (significantly lower than 76.3% at the end of 2024).

DB’s Price Performance & Zacks Rank

Over the past six months, shares of Deutsche Bank have gained 46.6% on the NYSE compared with the industry’s growth of 12.1%.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

Currently, the company carries a Zacks Rank #3 (Hold).

Stock Worth Considering

A few better-ranked foreign bank stocks are Natwest Group plc (NWG - Free Report) and Barclays PLC (BCS - Free Report) . 

NWG’s earnings estimates for 2025 have been revised upward to $1.42 per share in the past 30 days. Its shares have gained 40.1% over the past six months. NWG sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BCS’ 2025 earnings estimates have been unchanged at $2.02 per share in the past 30 days. Its shares have gained 36.6% over the past six months. BCS carries a Zacks Rank #2 (Buy).


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