Reuters: The chief executive of Deutsche Bank says London will not die as a financial centre but it will become weaker after Britain voted to leave the European Union.

John Cryan, a Briton who divides his time between Frankfurt and London, told Germany’s Handelsblatt business daily that he expects higher volatility than usual on the financial markets in the coming weeks.

“The financial centre won’t die but it will get weaker,” Cryan said of London.

Cryan did not comment on the possible direct impact on Deutsche Bank after the referendum. Deutsche Bank employs at least 11,000 staff in Britain.

Cryan is working on a strategic overhaul at Germany’s biggest lender, announcing in 2015 that it would cut 9,000 staff positions, of which 4,000 would be in Germany.

Deutsche Bank to shut 188 German branches and cut 3,000 staff

FRANKFURT (Reuters): Deutsche Bank confirmed last week  it had struck a deal with its works council to shut a quarter of its German branches, slightly fewer than expected, as it cuts costs and revamps retail banking.

Germany’s biggest lender has embarked on a strategic overhaul, announcing in 2015 that it would cut 9,000 staff positions, of which 4,000 would be in Germany.

It will first shed almost 3,000 jobs in Germany, with 2,500 in its retail unit, while talks with employee representatives about further cuts continue, Deutsche Bank said in a statement.

This will leave Deutsche Bank with 535 branches in Germany, compared to an original target of 500. It will start closing down branches before the end of the year, with the bulk to be shut in the first half of 2017. “We are meeting challenges of low interest rates, tougher regulation and especially a changed behaviour of customers,” retail head Christian Sewing said, adding that job cuts – which the bank hopes to carry out without forced redundancies – were needed to keep it competitive.

Deutsche Bank said it has invested up to 2 million euros ($ 2.3 million) each to refurbish 120 branches in recent years.

While Deutsche Bank is thinning out its network within large cities and in rural areas where it sees little potential, it is stopping short of a broad pull-back from smaller towns.

It is also creating 140 jobs in its business with small and medium sized corporate clients, Germany’s famed Mittelstand, as well as 100 jobs in its private banking unit.