Hoping to sideline the "complexity in its management," Deutsche Bank Sunday announced a comprehensive restructuring programme that will reorganize both its leadership and its various divisions, according to dpa. The decision was announced after an extraordinary meeting of the board of directors in Frankfurt. "We want to create a bank that's better-controlled, more cost-efficient and more strongly focused," said chief executive John Cryan. "The new structure and the new management team are of key importance in getting this done." Supervisory board chairman Paul Achleitner said the decisions reached Sunday were not easy ones. "Deutsche Bank rarely underwent such a fundamental reorganization in its history," he said in a statement. "This also requires tough decisions. I would like to stress that all parties involved have tried to achieve the best possible outcomes for Deutsche Bank, having set aside personal interests." The bank has been dogged by a host of problems in recent months, ranging from shake-ups in management to major anticipated losses. It also was fined 2.5 billion dollars in April for its role in manipulating the benchmark Libor rate. The changes will make the company more responsive, both to customers and to its board of directors, the company said. Towards that end, the changes will remove several layers of corporate structure. Cryan had telegraphed such changes when he joined the bank in July as it tried to sort out the turmoil of the Libor scandal. He replaced former co-chief executives Anshu Jain, who stepped down immediately, and Juergen Fitschen, who has continued to work alongside Cryan, but will step down in May. Many of the changes will focus on the company's investment banking division. The corporate banking & securities division is being split into two, while the asset management division also will see operational changes. In terms of structure, an expanded board of directors group known as the Group Executive Committee, will cease to exist. Additionally, 10 of 16 committees linked to the board will be dissolved. Notable people leaving the company include: Stephan Leithner, head of human resources; Colin Fan, co-head of investment banking; Stefan Krause, in charge of global transaction banking; and Michele Faissola, head of asset management. Other changes effective on January 1 will see Jeff Urwin, co-head of investment banking, join the board, and Karl von Rohr, who has served as head of the legal department, become head of human resources. Cryan will take on responsibility for the restructuring project. Many of the changes have been hinted at in the past, with Deutsche Bank announcing plans for a reorganization in April and saying it planned to sell off its Postbank subsidiary. Plans now call for a move away from equity markets in favour of closer ties to customers, even if multiple branches might also be shut. Cryan plans to announce details of the plan on October 29. Part of the plan might involve job cuts. There are reports of 10,000 positions being slashed in addition to the 15,000 positions that will leave the company when Postbank is hived off. Deutsche Bank has already warned investors it anticipates a loss of 6.2 billion euros (7 billion dollars) for the third quarter, mostly due to write-offs related to Postbank and expected fines linked to the Libor scandal. It has also warned investors that dividends for fiscal year 2015 will be reduced and told its employees not to count on large bonuses. Cryan's approach is viewed by many as the toughest methods used in cleaning house at Deutsche Bank in the company's history. Cryan has blamed many of the bank's problems on its investment banking division, which he says only enjoyed large profits because it employed unethical practices. Additionally, the bank has suffered from outstanding debts and the purchase of Postbank.
