Deutsche Bank has confirmed plans to shed 3,000 jobs and consolidate branches in Germany, as part of a broader restructuring strategy.
As part of the strategy, the bank plans to consolidate 723 branches into 535 larger sites by 2017.
Majority of the layoffs (2,500) will be made in the bank’s private and commercial clients unit. The recent redundancies will help the bank reach over 90% of its headcount-reduction goal.
The bank further said that it is in talks with employee representatives regarding layoffs in other units in Germany.
"It is a painful decision to reduce jobs. Unfortunately, this step cannot be avoided if Deutsche Bank is to remain competitive in the long term," Sewing said.
"We will implement the reductions fairly and with respect for our employees, but also as quickly as possible. Every employee is entitled to know in a timely manner about what lies ahead," the bank said.
In addition, the bank unveiled plans to invest about EUR750m in digital products and advisory services from now to 2020.
Deutsche Bank management board member who oversees private, wealth and commercial clients Christian Sewing said: "Our customers want a modern, customer-friendly Deutsche Bank.
"In addition, we are responding the challenges created by the low interest rate environment, increased regulations and, above all, a change in customer behaviour. If we are to continue to meet the needs of our customers in future, we will have to apply the right business measures."
Early this month, the bank scrapped plans to launch a digital bank in the US fearing that it may have an impact on the bank’s core strategy.