Earlier this month, the bank announced that it expects to report a third-quarter net loss of 6.2 billion euros ($7 billion) because of a combination of write-downs and litigation costs.
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The decision at a supervisory board meeting is the latest shake-up following the arrival of new co-chief executive John Cryan, who took over July 1 after co-CEOs Anshu Jain and Juergen Fitschen announced they were leaving.
It has also faced probes by Swiss authorities for suspected price fixing on the precious metals market, and United States investigators have looked at its Moscow branch on suspicion of possible involvement in money-laundering.
“Deutsche Bank rarely underwent such a fundamental reorganisation in its history”, said Paul Achleitner, chairman of the Supervisory Board.
In addition to the organizational restructuring, there will also be broad-based changes to key management roles.
“The new structure and management team are essential to getting this done”.
In a statement, Deutsche said it plans to combine its corporate finance and global transaction banking businesses, while making its private and business clients division an independent business unit.
As a result of the changes, Colin Fan-the bank’s co-head of investment banking-will depart on October 19, the bank said.
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Germany’s flagship lender is planning to consolidate the power of its top management board at the expense of its second-tier group executive committee (GEC), people familiar with the matter told Reuters last week.
