Thousands of Deutsche Bank Job Losses Feared After CEO’s Warning
Countless Deutsche Bank AG (ETR:DBK) employees may soon be facing mass job cuts. The CEO of the multinational German bank hinted that thousands of Deutsche Bank job losses could result from automation in coming times.
Speaking with Financial Times earlier this week, CEO John Cryan indicated that the bank may turn to downsizing its workforce as it competes with other banking giants. Thousands of Deutsche Bank jobs have already been cut and replaced with automation under his reign.
The CEO took the helm of affairs in mid-2015, and by late 2015, Cryan had shared a restructuring plan to cut 9,000 jobs over the period of next five years. So far, about 4,000 of these job cuts have materialized. Nearly all of these banking job losses are owed to the industry’s shift towards technology-based solutions. But these job cuts will soon pale in comparison with the ones he seems to be planning next.
“We employ 97,000 people…most big peers have more like half that number,” said Cryan.
The CEO also indicated his plans to close a number of bank branches. “The truth is if I went to a load of branches, I’d wait quite a lot of the day before I encountered customers. They just don’t come in as often as they used to,” said the Deutsche Bank CEO.
Bank customers are no longer feeling the need to visit bank branches for their day-to-day banking needs, which are being catered to by digital banking solutions like online banking. Technology is paving the way for this historic transition.
Automation to Blame for the Expected Deutsche Bank Job Losses
John Cryan warns that the Deutsche Bank job losses will likewise be a result of automation. “We’re too manual, which can make you error-prone and it makes you inefficient. There’s a lot of machine learning and mechanisation that we can do” he said
Deutsche Bank’s plans to substitute humans with robots (read: computers) underscores a universal trend whereby big and small businesses alike are employing technology to increase their efficiency. Supercomputers, which are able to perform complex tasks in a matter of seconds, are beginning to replace human resources. Businesses are finding it both cheaper and more efficient to let machines do many of the “human jobs.”
The banking industry is likewise undergoing technology-led evolution. In fact, industry veterans believe that many of the existing banking jobs will be lost to automation in the years to come. A former CEO of Citigroup predicts that 30% of the banking jobs may be lost to automation in the next five years.
The growing number of bank job cuts this year, including the now highly likely Deutsche bank job losses, seemingly raise the odds of that prediction coming true sooner than later.
“Deutsche Bank chief hints at thousands of job losses,” Financial Times, November 7, 2017.