Deutsche Bank has said it will cut about 18,000 jobs worldwide over the next three years, as part of what it termed a “radical transformation.”

The Frankfurt-based bank announced the plan Sunday, which will create a division for transaction services and another to hold failed assets. The German bank said the job reductions will improve returns, as it aims to reduce its cost-to-income ratio to 70 percent by 2022.

Deutsche Bank said layoffs will reduce its adjusted costs by as much as $19 billion over the next three years.

“We have announced the most fundamental transformation of Deutsche Bank in decades,” CEO Christian Sewing said in a statement. “We are tackling what is necessary to unleash our true potential.

“This is a restart for Deutsche Bank.”

The bank will put its unwanted assets to a new Capital Release Unit, where the bank said it will transfer $323 billion, or 20 percent of its leverage exposure.

The bank said it will fund its transformation within its existing resources, meaning it won’t pay common equity dividends for 2019 and 2020.

Tags: