Deutsche Bank

Human Resources
Report 2016

Restructuring as part of the bank's strategy

Deutsche Bank’s HR agenda and activities in 2016 were characterized by the restructuring measures that form part of its strategy. Beyond the actual job reductions, they have profound implications for the company’s workforce as a whole. In devising and negotiating these measures, the bank has continued its close cooperation with social partners based on mutual trust.

To make the organization more cost-efficient, a reduction of staff by 9,000 individual jobs as measured in FTE worldwide, with 4,000 located in Germany, has been announced. During 2016, Deutsche Bank conducted a transparent and constructive dialogue with employee representatives in Germany. The multi-stage process included an initial round of negotiations for a framework balance of interest agreement and a framework Strategy 2020 social plan. This was followed by three rounds of negotiations on specific balance of interest agreements for all impacted business divisions and infrastructure functions, which concluded in October 2016.

In a first step, a staff reduction by 3,000 jobs was agreed, mainly affecting the bank’s private and commercial banking business in Germany as well as the Finance and Risk Management functions.

Negotiations of the second and third stage primarily concerned the bank’s Chief Operating Office, an infrastructure function comprising operations and technology staff, as well as Human Resources, Communications & Corporate Social Responsibility, Deutsche Asset Management, Global Markets, CIB Corporate Finance and DB Research. The final settlement on all balance of interest agreements on all job reductions planned in 2016 in Germany was announced in October.

Internationally, Deutsche Bank has also made progress in rationalizing its footprint and reducing its workforce. Among the measures initiated in 2016 are the sale of bank subsidiaries in Argentina, Mexico, the U.S. and the UK as well as the closing of country representative offices.

As of December 31, 2016, Deutsche Bank employed a total of 99,744 staff members compared to 101,104 as of December 31, 2015. The bank calculates its employee figures on a full-time equivalent basis, meaning part-time employees are included accordingly.

The following tables show the numbers of full-time equivalent employees as of December 31.

FTE development by division

In k FTE

2016

2015

2014

2013

2012

Embedded external workforce (contractors and agency temps; excluding Postbank) Dec 2016: 7.7k FTE (Dec 2015: 7.5k FTE; Dec 2014: 7.8k FTE)

Global Markets

4.7

4.9

5.1

5.2

5.2

Corporate & Investment Banking

7.1

7.4

7.2

7.2

7.6

Private, Wealth & Commercial Clients

24.5

25.7

25.7

26.2

26.6

Deutsche Asset Management

2.5

2.7

2.6

2.6

2.4

Postbank

18.1

18.7

18.7

18.2

18.6

Non-Core Operations Unit

0.1

0.1

0.2

1.4

1.4

Infrastructure/Regional Management

42.6

41.6

38.6

37.4

36.3

Total

99.7

101.1

98.1

98.3

98.2

Movements in each division were as follows:

  • Global Markets (-185; -3.8%), due to reduced engagements primarily in India, the U.S., Latin America and the Russian Federation;
  • Corporate & Investment Banking (-244; -3.3%), driven by Corporate Finance (-161; -5.2%) and Global Transaction Banking (-84; -2.0%);
  • Private, Wealth & Commercial Clients (-1,156; -4.5%), driven by reductions primarily in Germany and by the divestment of Private Client Services in the U.S.;
  • Deutsche Asset Management (-157; -5.8%), particularly a result of the development in the U.S., the UK and the divestment of Deutsche Asset Management (India);
  • Postbank (-547; -2.9%), primarily due to reductions in the branch network;
  • Non-Core Operations Unit (-25; -17.4%), primarily due to investment banking-related non-core operations; the NCOU was closed at year-end 2016.
  • Infrastructure functions (+953; +2.3%), a planned increase in line with the bank's strategy, mainly driven by insourcing of business critical external roles (+2,105), primarily in COO (IT related), and due to the strengthening of control functions (+521), e.g. Compliance, Anti-Financial Crime, Risk and Audit. This was partly offset by staff reductions (-1,673), mainly in other COO areas as well as in Finance and Human Resources.

FTE development by region

In k FTE

2016

2015

2014

2013

2012

Germany

44.6

45.8

45.4

46.4

46.3

Europe (excluding Germany), Middle East and Africa

24.1

23.8

23.1

23.2

23.8

Americas

11.0

11.4

10.7

10.3

10.3

Asia-Pacific

20.1

20.1

19.0

18.4

17.8

Total

99.7

101.1

98.1

98.3

98.2

The number of employees decreased in 2016 by 1,360, or 1.3%, driven by the implementation of the bank's strategy which included different measures and impacts from region to region:

  • Germany (-1,157; -2.5%), driven by the implementation of restructuring measures, primarily in the retail bank;
  • North America (-230; -2.1%), mainly related to the divestment of Private Client Services;
  • Latin America (-222; -37.3%), as a result of the implementation of the bank’s footprint strategy;
  • EMEA ex-Germany (+295; +1.2%), mainly driven by the UK, primarily related to the insourcing of external roles (predominantly in COO) and the strengthening of control functions, e.g. Compliance, Anti-Financial Crime, Risk and Audit.