Germany’s biggest bank has unveiled significant cost-cutting plans in its much-anticipated strategy update.

Deutsche Bank will shut down operations in 10 countries and cut 9,000 jobs by 2020.

As part of its plan to cut costs and stabilize the bank, the Frankfurt-listed bank announced today that it will close onshore operations in Argentina, Chile, Mexico, Peru, Uruguay, Denmark, Finland, Norway, Malta, and New Zealand, while moving its trading activities in Brazil to “global and regional hubs.”

On top of the 9,000 cuts to its workforce, the bank will axe around 6,000 external contractor positions by 2020, it said. In addition, it plans to dispose of assets with a total cost base of around €4 billion ($4.4 billion) and 20,000 jobs over the next two years.

Deutsche has seen a raft of high-level shuffles lately. In June, John Cryan was appointed to take over from Anshu Jain as co-chief executive; the other co-CEO is Juergen Fitschen. Most recently, the bank announced the departure of Michele Faissola, head of Deutsche Asset & Wealth Management, as part of a restructure of its three-year-old asset and wealth management unit.

Cryan has been under pressure to overhaul the bank, which has been hit with significant litigation costs from past financial scandals. In its results statement for the three months to the end of September, the bank revealed litigation reserves had increased by €1 billion to €4.8 billion. It reported a record net loss of €6 billion for the period, as well as a 7 per cent year-on-year drop in revenues to €7.3 billion.

As Deutsche Asset & Wealth Management, net revenues were €1.2 billion, down 5 per cent versus the third quarter of 2014, while pre-tax income fell 25 per cent year-on-year to €263 million.

The overall results, which Cryan described as “highly disappointing,” come after Deutsche announced it would pay no dividend for the next two years in a bid to restore its balance sheet. Cryan announced four strategic goals to turn around the bank's long-term performance. 

“First, to become simpler and more efficient by focusing on the markets, products, and clients where we are positioned to succeed, leading to greater client satisfaction and lower costs. Second, to become less risky by modernising our outdated and fragmented technology and withdrawing from higher-risk relationships and locations. Third, to become better capitalised, so that we are no longer playing catch-up with regulation and market expectations. Finally, to run Deutsche Bank with greater discipline and purpose based on delegation of responsibility, personal accountability, and a reward system which is aligned to good performance and conduct,” said Cryan.

Deutsche Bank aims to raise its common equity tier one ratio from 11.5 per cent at the end of the September 2015 to 12.5 per cent by the end of 2018. Meanwhile, it plans to raise its leverage ratio from 3.6 per cent to at least 4.5 per cent by the end of 2018 and at least 5 per cent by the end of 2020.