Deutsche Bank AG is commencing on what might be its struggling investment bank’s most-sweeping overhaul ever and said that it would target more on the European clients, walking away from ambitions to be a global top security firm.

The bank said in a statement on Thursday that Germany’s biggest lender would scale back the United States rates sales and trading, diminish the corporate finance business in the United States and Asia, and review its global equities business with a look towards cutting it back. Deutsche Bank said that the measures would lead to a “significant reduction” in the workforce in the current year.

The decision caps a review of the investment bank, whose future had been a core factor in the tumultuous management shakeup that witnessed Christian Sewing take over as the CEO in the current month. Sewing, a Deutsche Bank veteran who began as an apprentice, is accelerating a push to refocus the lender on its European home market and reverse a two-decade effort to compete head-to-head with the big Wall Street firms, which dominate volatile securities trading. Sewing told in a statement, “We have to act decisively and to adjust our strategy.” He further added, “There is no time to lose as the current returns for our shareholders are not acceptable.”

Underscoring the problems at the investment bank, the trading revenue in the initial quarter fell by 17 percent from a year earlier, as compared with a 12 percent hike at U.S. rivals. Deutsche Bank told that the drop was less bad if adjusted for several one-off effects and a weaker dollar.

The company did not provide numbers depicting as to how deep the cuts to the investment bank would be. The lender had begun to retreat from some businesses under Cryan, who, in the year 2015, said that he would close operations in 10 countries, cut 10 percent of jobs, and decrease the number of investment bank clients by around half.

Emma Joe
Emma Joe is a contributor at Ode Magazine covering entertainment, politics, and trending news. She studied business management and has written for multiple websites. In addition to writing and expanding her art portfolio, Heather loves spending time with her family and traveling. You can contact her at emma@odemagazine.com

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