Deutsche Bank to Cut Jobs as Profits Soar

Deutsche Bank, Germany's biggest bank, said Thursday it planned to slash 3,280 additional jobs, or five percent of its workforce, even as its net profit soared 87 percent last year in its best annual performance in four years. The additional job cuts, would come on top of 1,920 already announced in Germany in December, bringing the total number of cuts to 5,200 or eight percent of its workforce, Deutsche Bank said in a statement. But some 6,400 jobs are to disappear because a further 1,200 jobs were set to be transferred to countries with low wage costs. The aim of the cuts is to save €1.2 billion ($1.6 billion) this year and then €1.1 billion per year in subsequent years, Deutsche Bank said. In all, the restructuring would lead to one-off charges of €1.3 billion, Deutsche Bank said. The bank, which had already set aside €400 million in provisions for job cuts as well as €174 million in other restructuring costs in its 2004 accounts, said it would book €750 million in charges this year, €350 million in the first quarter alone. However, the substantial charges did not prevent Deutsche Bank from lifting bottom-line net profit by 87 percent to €2.546 billion last year, highest level since 2000.