FRANKFURT: Deutsche Bank is drawing up plans to cut 10% of its 17,000 German retail jobs over the next few years as part of cost savings, a person with knowledge of the matter said on Thursday.

The plans at Germany’s largest bank come as Claudio de Sanctis prepares to take over the retail unit, known as the private bank division, on July 1.

Deutsche Bank, which declined to comment on any cuts to retail jobs, has publicly said that it is identifying further cost savings and would be trimming jobs in certain areas to keep profits growing.

The reduction in retail jobs is in the planning phase and still subject to discussions with unions and worker representatives, the person said, adding that the bank will add staff in some areas while cutting in others.

There was no specific timeframe for the move.

The Verdi labour union said it wouldn’t comment on “speculation” of job cuts but noted that the bank was bound by laws that protect workers from dismissal.

Deutsche Bank to cut 800 jobs after strong first quarter

Deutsche has in the past announced job cuts that never materialized. In 2019, it said it would cut 18,000 jobs as part of a major restructuring, but in the end it did not cut that many as business picked up again.

Deutsche, which in Germany also operates under the Postbank brand, has closed more than 300 retail branches in Germany over the past five years to around 1,000 currently.

The bank has been expected to continue to cut branches to curb expenses, Reuters has previously reported.

S&P last month upgraded its outlook for the bank and said that the retail division has “considerable scope” to cut costs.

Deutsche Bank recently said it was streamlining its mortgage business, which is part of its retail bank.

The retail division has long suffered from low interest rates, dampening its revenue, but its fortunes have turned around with a surge in interest income as central banks try to stamp out inflation with higher interest rates.

Manager Magazin first reported the plans.