Dr Breuer has changed tack on layoffs

Deutsche Bank, which is trying to move into the first tier of global investment banks, had previously pledged to limit job losses to 2,600.

But profits fell 49% in the three months from July to September and the bank took an asset write-down of 408m euros (�253m) after 11 September.

The terrorist attacks in the United States sent Deutsche Bank's holdings in telecoms and technology stocks plunging in value.

Boss back-tracks

Deutsche Bank chief executive Rolf Breuer has said in the past he wanted to limit job losses so as not to undermine the bank's expansion plans.

But the bank's plans to raise its profile in investment banking remain on track, with the bulk of the jobs losses coming from other parts of the business.

We are very confident of finishing the remaining months of 2001 comparatively well

Deutsche Bank chief executive

Staff in the private client and asset management division will take the heaviest blow, with 3,300 jobs going there - profits from private banking were 90% below year-earlier.

Support service workers will account for the remaining 1,200 job losses.

'Confident' for full year

Nor will the bank's earnings be hurt in the long term, according to the chief executive.

"Due to our solid starting position and broad foundation, we are very confident of finishing the remaining months of 2001 comparatively well," said Mr Breuer.

Furthermore, the cost-cutting strategy had shaved 8% off operating costs by the end of the third quarter of 2001.

Embarassing leak

However, the early leaking of Deutsche Bank's results could be prove awkward for its plans for a New York listing, analysts say.

The German stock market regulator has launched an investigation into how the bank's third quarter figures came to be leaked to the market on 31 October, one day before they were due.

To counter the damage caused by the leak, Deutsche Bank was forced to release its figures late on that day rather than wait till 1 November.

Regina Nussner, a spokeswoman for the Frankfurt exchange's regulator, said Deutsche Bank could be fined 3m Deutschmarks ($1.39m) if found guilty of leaking the information to a newswire.

The United States regulators take a particularly tough line on leaks of market sensitive information.