Deutsche Bank makes u-turn on job cuts

Deutsche Bank on Thursday responded to the deepening global downturn by announcing it would shed an additional 4,500 jobs, taking the total number of planned layoffs to 7,100, more than 7% of its workforce.

Germany's biggest bank, which had steadfastly denied it would make further cuts, said most of the cuts would be in its struggling private clients and asset-management divisions, where profits have collapsed this year.

The belated move brings Deutsche Bank into line with its main rivals, which have been cutting costs at a time of falling profits. Total job losses in German banking are expected to top 25,000 over the next two to three years.

Rolf Breuer, Deutsche Bank chairman, insisted recently he would not weaken the bank by cutting more staff, although other bank executives indicated in early September it was looking to cut 10% of its 97,000 staff.