Deutsche Bank shares slumped more than 5% as the German lender announced a mass restructuring program over the weekend. In one of its boldest overhauls, the bank will see 18,000 jobs cut by 2022 and the closure of its global equities sales and trading business in a bid to improve profitability. The bank expects the sweeping reforms, which also involve the creation of a 74 billion euro ($83.05 billion) "bad bank," to cost 7.4 billion euros by 2022. With second-quarter results due on July 25, Deutsche is expected to report a net loss of 2.8 billion euros. Deutsche Bank Chief Financial Officer James von Moltke told CNBC's Annette Weisbach on Sunday that this will be the last strategy overhaul, aiming to reduce global headcount to around 74,000 and cut adjusted costs by a quarter to 17 billion euros. Several sources have told CNBC that layoffs at the bank's offices in New York begin on Monday.

The German bank's decision to scale back on investment banking comes just two days after its investment banking chief Garth Ritchie stepped down by "mutual agreement." Deutsche shares have risen 16% over the past month, bouncing off an all-time low in early June after CEO Christian Sewing called for "tough cutbacks" at a contentious shareholder meeting. However, the multiyear decline is evident in a share price at Friday's close of 7 euros, as opposed to 112 euros at their pre-crisis peak. The tumbling share price has reflected the bank's long run of legacy scandals, many of which relate to anti-money-laundering failures, along with the collapse of merger talks with domestic rival Commerzbank, which may have eased pressure to trim or hive off its investment banking arm.

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