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Deutsche Bank to cut roughly 7,000 jobs in new restructuring

Deutsche Bank AG will reduce the number of its full-time jobs to below 90,000 from more than 97,000 as it finalized a review of its equities sales and trading business, the German lender said ahead of its May 24 annual general meeting.

As part of the business' restructuring, the bank will reduce the headcount in the division by about 25%. Deutsche Bank will focus on electronic solutions and its most important global clients in cash equities, while in prime finance, the lender will reduce leverage exposure by a quarter, representing a reduction of about €50 billion.

Deutsche Bank said the measures will contribute to a decrease of over €100 billion in the corporate and investment banking arm's leverage exposure, equivalent to about 10% of the €1.050 trillion of leverage exposure at the end of March.

"We remain committed to our corporate and investment bank and our international presence," CEO Christian Sewing said. "However, we must concentrate on what we truly do well."

The bank expects to achieve the majority of reductions by 2018-end, with the downsizing of associated personnel already underway.

Deutsche Bank's management board is looking to cut adjusted costs to €22 billion in 2019, with no additional substantial disposals currently planned. The lender expects its adjusted cost base not to surpass €23 billion in 2018.

The management board also reiterated its post-tax return on tangible equity target of about 10%, which it seeks to reach from 2021 onward. Deutsche Bank, which expects charges of up to €800 million in 2018 for the planned restructuring, noted it intends to deliver steady growth in return on capital over the coming years.

Insiders earlier told The Wall Street Journal that executives at the German lender were considering making nearly 10,000 job cuts. Bloomberg News, meanwhile, reported that Deutsche Bank will significantly reduce its presence in the U.S. and has begun reducing its operations in central Europe, the Middle East and Africa.