Coronavirus, Deutsche Bank closes 100 branches: at home the employees of one in five branches

The crisis triggered by the health emergency has also severely weakened the banking sector. There are several institutions that have suffered operational slowdowns due to Covid, and not a few banks that have found themselves dealing with staff reductions and staff cuts.

Last on the list for now is Deutsche Bank. After the beating following the publication of the FinCEN Files which unveiled the bank’s alleged involvement in “dirty business”, it plans to cut 100 branches across Germany: practically, one in five, bringing the total number of the country to 400.

The causes of the cuts

The Covid-19 emergency has pushed customers towards online and a move away from cash: the largest German credit institution with this operation tears and blood plans to revive its profitability.

The decision follows a move by rival Commerzbank, which announced over the summer that it would not reopen 200 branches closed during the pandemic. And it is not the first time for Deutsche: already in 2016 it had reduced the number of branches from more than 700 to around 500.

“When it comes to offering advice to our clients, the branch is no longer the sole or key location,” wrote Philipp Gossow, head of German retail at Deutsche, in an email to staff . “So we will further optimize our branch network”.

In the early stage of the virus crisis, Deutsche had temporarily stopped the layoffs, which are then resumed. In the first half of 2020, Deutsche temporarily closed 200 of its 500 branches and streamlined its internal processes within the retail unit.

Deutsche Bank’s plan

At the moment it is not known what will happen in other European countries, and also in Italy, but given the “at home” trend, we should not be surprised if in the coming months Deutsceh Bank also announced a cut of the branches in the Belpaese.

Since 2019 Deutsche has been living in a very delicate reality, as its employees know well. Was the subject of a great renovation plan, with the goal of a partial withdrawal from investment banking activities, a radical contraction of its balance sheet and the cut of 18 thousand jobs by 2022.

Chief Financial Officer James von Moltke said there were “encouraging signs”In the bank’s retail unit in the third quarter. Obviously, the new round of branch closures will involve a unknown number of job cuts. Deutsche is looking to conclude negotiations with employee representatives by the end of this year so that the cuts can be made in 2021.

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