A total of approximately 1,970 staff, across all grades, will be affected by the restructuring plan, of whom about 1,025 are in the Americas, 315 in the United Kingdom, 320 in Continental Europe, including Germany, and 310 in Asia/Pacific. The plan will be carried out over the next 12 months. The following areas of CIB will be affected: Banking coverage, execution and relationship management processes; custody, trade finance and other transaction banking activities; and related technology, settlement and real estate support functions.
The Bank has also identified further measures – relating to its Private Client and Asset Management (PCAM) division and infrastructure areas – that will result in an additional headcount reduction of approximately 1,800 employees. These will be in Germany and Continental Europe. These measures follow the creation of an integrated Private and Business Clients unit and the subsequent rationalisation of its credit risk management processes. They are subject to negotiation and agreement with the relevant Workers Councils. The associated costs will be recorded as severance charges and not as restructuring charges.
The Bank does not envisage any further restructuring charges for the remainder of the 2002 business year.
The above measures are in addition to the Group-wide headcount reductions totalling 9,200 that were announced in 2001, of which approximately 5,500 have been achieved (including 365 redundancies made in CIB’s Global Equities unit in May 2002). Of the remaining 3,700, about 1,150 relate to the CIB fourth quarter 2001 restructuring charge, about 2,100 to the PCAM fourth quarter 2001 / first quarter 2002 restructuring charges, with the balance relating principally to infrastructure groups. Since the beginning of 2001, Deutsche Bank has announced headcount reductions that affect approximately 13,000 employees within the Group. This does not include the redundancy of about 1,500 employees related to the acquisition of Zurich Scudder Investments.
The current plans form part of the implementation measures adopted by the Bank as it pursues its previously stated four key strategic initiatives:
* Before accounting for the impact of the Deutscher Herold disposal and the Zurich Scudder Investments and RREEF acquisitions