Deutsche Bank, the beleaguered European investment bank, plans to exit from its equity sales and trading businesses as part of a broader effort to increase its profitability.
The move, which was announced in a statement Sunday, will slash 18,000 jobs at the bank, according to a report by Bloomberg News. Deutsche Bank's withdrawal from its trading businesses will managed by a newly created unit, dubbed Capital Release Unit. Restructuring charges will total 7.4 billion euro, according to the bank.
The exit from sales and trading, which posted a net loss of $2.8 billion in Q2, signals the end of the German lender's aim to rival Wall Street's large investment banks in trading as it retreats to its core investment banking and retail banking businesses aimed at German and European markets.
It is also the latest in the bank's troubled recent history, which has been plagued by a decline in its share price, investigations, and a $7.2 billion settlement with the Department of Justice for misleading investors during the 2008 financial crisis.