As part of the overhaul, the bank will scrap its global equities business, scale back its investment bank and also cut some of its fixed income operations, an area traditionally regarded as one of its strengths. The assets will be sold over the coming years.
"This day we have now launched the most foremost transformation of Deutsche Bank in a long time", chief executive Christian Sewing stated.
Deutsche Bank has struggled with regulatory penalties and fines, weak profits, high costs, and a falling share price.
These cuts are expected to lead to 18,000 job cuts.
Germany's biggest bank at one point dreamed of dominating investment banking, competing with the likes of Goldman Sachs and Morgan Stanley in Europe and overseas.
While Barclays may well well maybe preserve up enterprise, the accurate victors from Deutsche's demise are the U.S. banks who have prevailed after many unsuccessful attempts (RBS, UBS, DB and others) to muscle into the so-called "bulge bracket" of global investment banks.
According to the report, most of these operations are conducted in NY and London, with the latter Deutsche Bank's largest trading hub - with some 8,000 employees.
Last week, the head of Deutsche's investment bank Garth Ritchie agreed to step down, marking a sign of the division's waning influence.
The bank's supervisory board met today to agree the proposed changes, one of the biggest shake-ups in the industry since the financial crisis. But the restructuring effort won't come cheap.
It may well maybe maybe additionally file a second quarter lack of €2.8bn to partly pay for the shake-up, that may well critically shrink its investment banking enterprise. In aggregate, Deutsche Bank now expects cumulative charges of Euro 7.4 billion by the end of 2022.
It suffered a further blow in April when merger talks with rival Commerzbank collapsed. Revenue fell 9%, and the company said it would be "essentially flat" for the year. The unit, which accounts for roughly half of Deutsche Bank's revenue and which was cause of its decline, will be broken in two. The bank failed USA bank stress tests, suffered downgrades to its investment grade ratings, and, to add insult to injury, had its offices raided by German law enforcement in November 2018 as part of a money-laundering investigation linked to the Panama Papers leaks.
Deutsche Bank did not provide a geographic breakdown of the cuts, but many are expected to hit United States employees.