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Deutsche Bank Cuts 111 Senior Roles in Cost-Cutting Drive, Invests €571m in India Operations

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Deutsche Bank has reportedly dismissed 111 senior executives in its private wealth and retail banking sections as part of its latest cost-reduction efforts, according to a report by the Financial Times. The cuts primarily impact high-earning global managing directors and directors within Deutsche Bank’s private banking division, a move designed to help the German bank reach its ambitious cost-cutting targets for the coming years.

The private wealth and retail unit is under particular scrutiny as Deutsche Bank seeks to bring the division’s cost-to-income ratio down to between 60% and 65% by 2025. This would represent a significant improvement from approximately 80% in 2023 and 77% during the first nine months of this year. The bank’s private banking division currently accounts for only 23% of its total profits, despite contributing around 31% of overall revenue, prompting concerns about its efficiency.

To support these cost-cutting goals, Deutsche Bank has not only reduced senior management positions but also introduced a series of operational changes under the leadership of Claudio de Sanctis, head of private banking. De Sanctis, who took over amid the departure of two previous private banking heads, has committed to enhancing the division’s profitability and trimming expenses. His restructuring efforts have included merging multiple management levels, shutting down 300 branches across Germany, and slashing spending on external consultants. In addition, Deutsche Bank has cut front-office roles, focusing resources on revenue-generating functions.

Despite the downsizing, de Sanctis has indicated plans to expand the bank’s wealth management team in 2024, signaling a targeted approach to strengthen specific growth areas within the private banking division.

Meanwhile, Deutsche Bank has announced a substantial investment in its Indian operations, allocating approximately €571 million to support growth in the country’s expanding financial sector. The funds will be directed toward enhancing the bank’s capabilities in sustainable finance and digital transformation, two areas seen as pivotal for Deutsche Bank’s growth in India.

In a press release on Deutsche Bank’s website, Alexander von zur Muehlen, the bank’s CEO for Asia Pacific, EMEA, and Germany, highlighted India’s potential as a beneficiary of global trends such as shifting supply chains, increased digitization, and geopolitical realignment. “India is well positioned to benefit substantially from many of today’s most important trends,” von zur Muehlen said, underscoring the strategic importance of the investment for Deutsche Bank’s long-term growth in the region.

Kaushik Shaparia, CEO of Deutsche Bank Group India, further emphasized the investment’s significance, describing it as a “validation of confidence” in the bank’s business model and growth potential in India. He added, “As a Global Hausbank, we continue to see opportunities for us to work ever more closely with our clients, to support them with best-in-class services and advice.”

As Deutsche Bank undertakes a comprehensive restructuring in its core European operations, the substantial investment in India indicates the bank’s intent to capture growth opportunities in high-potential markets while navigating cost challenges at home.

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China and Europe Drive Global EV Growth as U.S. Market Stalls Amid Policy Uncertainty

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Global sales of electric and plug-in hybrid vehicles continued to surge in April, driven by strong performance in China and Europe, despite a slowdown in North America, according to new data released Wednesday by EV research firm Rho Motion.

Worldwide, electric vehicle (EV) sales reached 1.5 million units in April, a 29% increase compared to the same month in 2024. However, this figure marked a 12% decline from March, indicating a monthly dip in momentum. From January to April, EV sales totaled 5.6 million units — a 29% rise year-on-year.

Europe and China were the key drivers of growth. Sales in Europe jumped by 35% in April, with China close behind at 32%. Meanwhile, the rest of the world saw an even stronger April growth rate of 51%. In contrast, North American sales declined by 5.6% during the same period.

Tariff negotiations are dominating headlines, but quietly, domestic manufacturers in China and the EU are growing market share,” said Charles Lester, Data Manager at Rho Motion. “The EU is the standout performer in 2025, as emissions targets have ignited a rapid industry transition to electric.”

From January to April, China posted a 35% increase in EV sales compared to the previous year. Europe followed with 25%, while North America saw more modest growth at just 5%.

Experts point to political developments as a key factor shaping the market’s trajectory. “EV adoption is accelerating — but politics, not technology, will decide who leads and who lags,” said Professor Christian Brand, a transport and energy expert at Oxford University.

In the U.S., uncertainty over the future of green tax incentives under President Trump’s administration is causing hesitation. Legislation under review would eliminate the current $7,500 federal tax credit for EV purchases by the end of 2026 and limit eligibility further. Tax breaks for commercial and second-hand EVs could also be scrapped.

Meanwhile, China is rolling out new consumer incentives to stimulate its slowing economy. Buyers trading in older vehicles for new EVs are now eligible for subsidies worth 20,000 yuan (€2,471), further boosting demand.

Trump’s 25% tariffs on imported vehicles and components have complicated matters for automakers with global supply chains. While recent executive orders offer some tariff relief, industry leaders remain concerned about profitability and dampened consumer sentiment.

Despite the policy divide, more than one in four cars sold globally this year is expected to be electric, according to the International Energy Agency.

The shift to EVs is a gradual evolution, not a revolution,” said Brand. “It’s not just about switching engines — it’s about reshaping entire industries.”

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Microsoft Lays Off 6,000 Employees Amid Strategic Shift and AI Investment Drive

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Microsoft has begun laying off approximately 6,000 employees, accounting for nearly 3% of its global workforce, in what is its largest round of job cuts in over two years. The company cited organizational restructuring as the reason behind the move, which comes despite strong quarterly earnings and ongoing investment in artificial intelligence (AI) infrastructure.

The layoffs began Tuesday and span various departments, teams, and global regions, though many of the affected roles are concentrated in Microsoft’s home state of Washington. The company notified state officials that 1,985 jobs would be cut at its Redmond headquarters, with most of those roles tied to software engineering and product management.

This is a day with a lot of tears,” wrote Scott Hanselman, a Microsoft vice president, on LinkedIn, where several affected employees and company leaders shared news of the layoffs. “These are people with dreams and rent and I love them and I want them to be OK.”

The cuts affect units across the company, including the Xbox gaming division and LinkedIn, the professional networking platform owned by Microsoft. The company stated that the layoffs would impact workers at all levels but are particularly focused on reducing management layers to enhance organizational efficiency.

The move follows Microsoft’s earlier announcement in January of smaller, performance-based layoffs. This latest round is the largest since early 2023, when the company cut 10,000 positions in the wake of pandemic-era overhiring.

Microsoft Chief Financial Officer Amy Hood indicated during an April earnings call that while the company’s headcount had increased 2% year-over-year by March, it had slightly declined compared to the end of 2024. Hood emphasized the company’s aim to “increase agility by reducing layers with fewer managers.”

The restructuring comes as Microsoft intensifies its investment in AI technology, with an estimated $80 billion allocated for AI-related infrastructure, including data centers, in the current fiscal year. However, analysts suggest that while AI may influence how Microsoft operates, the layoffs are more reflective of strategic realignment than automation-driven job replacement.

Big tech companies have trimmed their workforces as they rearrange their strategies and pull back from aggressive hiring during the early post-pandemic years,” said Daniel Zhao, an economist at Glassdoor.

With economic uncertainties looming and consumer spending patterns shifting, experts say Microsoft’s decision could also reflect a cautious approach to longer-term planning amid geopolitical and market fluctuations.

Laid-off employees in Washington have been informed their final day will be in July.

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Sixt Shares Dip After Mixed Q1 Results Despite Revenue Growth Abroad

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Shares in German car rental and mobility firm Sixt fell nearly 4% by midday Tuesday following the release of a mixed first-quarter earnings report that highlighted stagnating revenue in its home market.

The company reported total revenue of €858.1 million for the first quarter of 2025, reflecting a 10% year-on-year increase. While overall figures showed improvement, revenue in Germany remained flat at €243.3 million, raising concerns among investors. In contrast, the company’s performance in the broader European market was stronger, with revenue climbing 13.8% to €296.5 million compared to the same period last year.

Despite narrowing losses, Sixt remains in the red. Earnings before taxes (EBT) stood at -€17.6 million, an improvement from the -€27.5 million reported in the first quarter of 2024. Net income after taxes also showed progress, coming in at -€12.6 million, compared to -€23.1 million a year earlier.

In its earnings statement, the company reaffirmed its long-term strategy focused on international growth and financial turnaround. “Sixt is maintaining its expansion course for all regional segments, with profitable growth remaining the top priority,” the report stated.

Looking ahead, the company remains optimistic about demand for its mobility services throughout the year. Sixt confirmed its full-year guidance for 2025, projecting revenue growth between 5% and 10% and targeting a significantly improved EBT margin of around 10%, compared to last year.

Sixt’s results come as the company continues to navigate a challenging economic environment, marked by shifting travel patterns and inflationary pressures in its core markets. Analysts suggest that while the international momentum is encouraging, the flat performance in Germany may continue to weigh on investor sentiment if not addressed in the coming quarters.

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