Deutsche Bank to lay off as many as 20,000 people

Deutsche Bank could slash as many as 20,000 jobs in its biggest revamp in years, Bloomberg reported on Monday.

According to sources close to the matter, the bank could present its restructuring plans as early as the current week although the number of cuts had not yet been confirmed.

If the figure being speculated on proved correct, over a fifth of the lender's total headcount might be impacted.

“Deutsche Bank is working on measures to accelerate its transformation so as to improve its sustainable profitability,” a spokeswoman told Bloomberg by email. “We will update all stakeholders if and when required.”

Already in May, the bank had warned of serious cutbacks to come after the negotiations for a merger with Commerzbank fell trhough.

The changes were expected to hit Deutsche Bank’s investment banking division the hardest and in particular its US operations. The bank was planning to cut its global equities headcount by 50%, they same sourcessaid.

Reuters had reported on Sunday that the lender was looking to hire 300 people globally for its wealth management arm by 2021.

The bank was expected to make a formal announcement no later than July 8.

Deutsche Bank shares were up as much as 3.5% in Frankfurt trading amid a broader stock rally in Europe.

Deutsche Bank will also make changes to the management board, with investment banking head Garth Ritchie, Chief Regulatory Officer Sylvie Matherat and Chief Financial Officer James von Moltke all potentially leaving, people familiar with the matter said.