Deutsche Bank has deployed robots to slash thousands of jobs as part of its radical automation plan, the media reported. The robots will help Deutsche Bank to strategically downsize.
The decision is expected to save Deutsche Bank millions of dollars in costs. In July, Christian Sewing, the chief executive, had announced plans to slash 18,000 jobs as part of its business overhaul. Deutsche cut 6,000 jobs and restricted investment banking activities under Sewing as part of its sweeping changes, the media reported.
In the past, the bank had under-invested in technology. The Deutsche Bank aims to drive automation in its back office operations through a project called Operations 4.0 to with the goal to become innovative and digital. With that, the bank’s back office employees are expected to understand basic coding and handle digital tools.
Deutsche Bank has set a €6bn cost-saving target to achieve over the next three years and automation with robots is a significant part of it.
Mark Matthews, head of operations for Deutsche Bank’s corporate and investment bank, told the media that, “It [headcount] will continue to go down, there’s no question about that. Our model is to reduce costs and, at the same time, improve our control environment and the client experience.”
Last week, BNP Paribas obtained approval to take over Deutsche Bank’s global prime brokerage and electronic equities clients. The deal is part of Deutsche Bank’s major restructuring plans. Both banks signed a master transaction contract after agreeing to the deal. However, the deal is still in its transition phase.