Deutsche Bank AG is poised to reach an agreement with labor representatives this week that will pave the way for the German lender to eliminate about 1,000 jobs in its home marketplace as part of Chief Executive Officer John Cryans cost cuts announced last year, said people with knowledge of the matter.

The planned task cuts, which need to be signed off by the works council, will mostly affect back-office staff such as in information technology services, said the people, who asked not to be identified because negotiations are private. The Frankfurt-based lender in June struck an agreement with its works council to eliminate about 3,000 full-time postures, including 2,500 undertakings at its private and commercial clients business.

Cryan, 55, has sought to reassure investors that hes able to boost profitability as concerns about mounting legal expenses inspired some clients to pull monies and investors to question the lenders financial health. As part of his overhaul announced in October 2015, the CEO plans to eliminate 9,000 undertakings, or about 9 percent of the global workforce, including 4,000 positions in Germany.

Deutsche Bank has two challenges — on one hand it needs to increase its capital ratio, and on the other it needs to change its business model and improve profitability, said Daniel Regli, an analyst at MainFirst. For the latter, one style are cost cuts, and the nod from the works council is a small step forward.

An official for Deutsche Bank declined to comment.

Shares Rebound

Cryan has struggled to reverse a slide in shares that eroded nearly half of the companys market value this year. Deutsche Bank shares touched a record low last month after the U.S. Department of Justice requested $14 billion to settle a probe into the sale of residential mortgage-backed securities, more than twice what the lender has set aside for litigation.

The CEO told Germanys Bild newspaper last week that he doesnt plan to raise capital and ruled out government assistance. The stock rebounded on Friday after Agence France Presse reported that the lender was nearing a settlement of $5.4 billion with the Justice Department.

The lenders 1.75 billion euros ($ 2 billion) of 6 percent additional Tier 1 bonds, the first to take loss in a crisis, fell 0.4 cents on the euro to about 75 cents, according to data compiled by Bloomberg. The notes fell as low as 69 cents last week. After jumping 17 basis phases on Sept. 26, credit-default swaps insuring Deutsche Banks senior bonds against loss erased their earlier increase, falling 24 basis phases during the rest of the week, according to data from CMA. The swaps were up 10 basis phases on Monday to 234, the data show.

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