(Image source from: Yahoo Finance)

Deutsche Bank AG, a German investment banking company is cutting dozens of employees and as a part of a broader plan, it is strengthening space at its Chicago office to shrink the United States operations, according to people briefed on the matter.

According to sources, the bank will be reducing headcount. Some operations staff are being offered the choice of losing their jobs or relocating to Jacksonville, Florida, the people said.

Deutsche Bank earlier this year had proclaimed it would scale back its U.S. operations, as Christian Sewing, a new chief executive officer attempts to retrench following years of scandals and hapless performance.

The bank has reasoned cutting as many as 20 percents of its U.S. employees and is planning to reduce its rates sales and trading business in the region.

In May, the firm told staff it was closing its Houston office and is moving its New York headquarters from Wall Street to Midtown, slashing its footprint in the city by 30 percent.

One senior executive said at the time that the firm still views its presence in New York, San Francisco, and Chicago as indispensable for its corporate-finance units.

In Frankfurt trading this year, Deutsche Bank has fallen 33 percent. The shares over the past few weeks rebounded 11 percent after it released second-quarter earnings that were higher than analysts anticipated.

By Sowmya Sangam