Deutsche Bank chief executive John Cryan has hinted at plans to cut tens of thousands of jobs in the face of an increasingly technology-efficient and automated future in the financial industry.
‘We employ 97,000 people,’ Cryan told the Financial Times. ‘Most big peers have more like half that number.’
Confronted with lower revenues, the bank has made about 4,000 of the 9,000 job cuts announced in late 2015 as part of a five-year restructuring plan.
Cryan said more job cuts were likely to come through replacing manual work with machine learning and mechanization.
Hoping for tech-driven savings, Cryan also said that the ratio of revenue-generating staff in the front office to those on the back end was ‘out of kilter.’
Cryan has been questioned by critics in the past for his messages regarding job cuts. He has plainly described Deutsche as having a ‘hiring frost’ and said at a conference in September that accountants at the bank ‘spend a lot of the time basically being an abacus.’
He also highlighted another money-saving opportunity at the bank, which is to collaborate with competitors on crime prevention and detection.
‘Every bank at the moment has a huge and burgeoning department of people who are doing the same stuff. It’s not a source of competitive advantage and you’re exposed to making your own mistakes,’ Cryan told the FT.