Deutsche Bank may unveil thousands more job cuts in the coming months as it struggles to slash costs by two billion euros and keep up with faster-paced rivals, an industry source said today.
The cuts - part of a recent cost saving drive under its new chief executive, Mr Josef Ackermann - will be carried out over the next two years as Germany's biggest bank feels the pressure from investors to improve profitability and boost its market value.
A severe equities market downturn and dearth of deals has forced a fresh round of cost reductions in the investment banking industry, which had hoped for a revival of activity by the fourth quarter of this year.
Deutsche's last round of job cuts came in late May when the bank said it was axing nearly 1,000 positions globally in equities and information technology on top of 9,200 announced last year, the bulk of which have been carried out.
Fresh job cuts are likely to include positions at the bank's private clients and asset management business (PCAM) in continental Europe which has not announced any job cuts so far this year, the source said.
A spokesman for Deutsche Bank declined to comment.