And the bank is getting set to further wield the axe in its North American operations where it currently employs 10,842 staff.
According to Germany’s Die Welt the firm is eyeing up plans to sack staff as it grapples with a $14bn (£11.4bn) fine from the US department of justice.
The firm is planning to take drastic action after its share price dropped 52 per cent in a year, by decimating its workforce.
Bank bosses have already announced lay offs of 9000 as well as a further 6000 external contractors but could now be set to shed as many as 5000 more jobs in the USA.
Davide Serra, founder of Algebris Investments LLP told Bloomberg radio: “They can keep a small US operation to basically serve German and European customers.
“They don’t need an operation to win customers from US clients.
“You probably need less than half the people you currently have.
“For Deutsche Bank, there’s only one solution, which is to go on a diet.
“I think the diet comes in the investment-banking division mainly and in my expectation you are looking at a third of reduction of the balance sheet and a third reduction of the number of staff overall in the next two to three years.”
But the US job cut claims have not gone down well with other banks who could be exposed to the ongoing turmoil at the bank.
JPMorgan Chase & Co Kian Abouhossein wrote a note saying: “We would question any such move to cut back on the US operations if it’s likely to impact the long-term investment banking business as the US is about 50 percent of the global revenue wallet.
“Overall, we believe Deutsche Bank needs to cut costs considering its poor cost efficiency, not change strategy yet again.”
Last week it was announced that Deutsche Bank is preparing to float its asset management arm to shore up captial.
But the section has taken a massive hit with seven senior executives jumping ship amid fears the bank could be headed for bail out.
The arm has €719bn (£642.8bn) in assets under management and analysts say it is worth at €8bn.
According to reports five key employees from the bank”s asset management arm have walked out including Owen Fitzpatrick, US head of equities; Joe Benevento, US chief investment officer; Dodd Kittsley, US head of exchange traded product strategy; Nils Ernst, equity fund manager; and Chris Price, director of insurance asset managementThe company”s head of equities Henning Gebhardt has announced he is to leave in 2017 while convertible bond managers Marc-Alexander Kniess and Stefan Schauer have also left the firm.
According to the Financial Times, the morale at the bank is at an all time low.
Atlantic Equities analyst Chris Wheeler said: “Deutsche AM seems to be having issues.
“Asset management is all about confidence.
“When you see that the parent company is all over the place, it is very hard to attract money.”
Plans to take the asset management division to an initial public offering are being met with mixed reviews.
Credit Suisse analyst Jon Peace said: “An IPO of the asset management division would help reduce the size of any additional equity placement or rights issue, although it would reduce earnings and concentrate the business mix more on capital markets.
“The asset management division only accounts for around 15 per cent of earnings expectations at Deutsche Bank, but it is the most profitable business and a useful source of earnings diversity.”
While Vienna-based Erste Asset Management strategist Peter Szopo added: “A partial float of Deutsche’s asset management arm would be a defensible step to help solve the bank’s capital issue. However, it is obvious that the bank’s long-term appeal would suffer.”
According to sources the Qatari royal family, who were reported to be involved in bond deals just last week, expressed concern over their long-term strategy and are said to have pulled out of future equity deals.
The bank is not commenting on the claims that their lifeline has been pulled as their credit instruments sit at almost records lows.