Deutsche Bank could increase home office to save on office costs
Deutsche Bank's CEO Christian Sewing says that in light of the experience of having employees work from home during the coronavirus outbreak, the company will look into the possibility of reducing its office footprint. “If 60% of employees worldwide can work away from their offices and still deliver excellent service to our clients, then of course we have to ask ourselves: can we give our staff additional flexibility to work from home if they want to?”
Sewing was speaking to shareholders via a video link, since the ongoing pandemic made a meeting in one location impossible. He said the bank was on track to cut costs to €17bn by 2022 from its 2019 levels of €21.5bn and suggested that renting less office space in expensive urban centers could play an important role in that drive. He added that it would help to reduce corporate travel as well. DB will not be distributing a dividend for 2020 but intends to do so by 2022. By that time, the company is also expected to shed 18,000 jobs worldwide to bring its staffing numbers down to 74,000.
Germany's financial regulator BaFin recently announced it will carry out a special audit of the company to ensure the company is in compliance with good corporate governance practices. Its failure to do so in the past led to numerous fines that cost the bank billions.