The bank, which unveiled a raft of swinging cuts on Tuesday, said it will focus on paring back hundreds of vendors, legal entities and computer systems, and reduce staff in expensive locations such as London and New York, as it adapts to a tougher investment banking environment.

Joint CEOs Anshu Jain and Juergen Fitschen told shareholders on Tuesday they will put the bank on a crash diet that will involve a 4 billion euros ($5 billion) restructuring charge to glean 4.5 billion euros in savings and will ring fence 125 billion euros of risky assets.

Deutsche Bank will sell 40 buildings, consolidate more than 600 legal entities and downsize the 100,000 cost centers which evolved as part of an entrepreneurial culture of chasing growth during more favorable market conditions.

"We have 600 information technology applications within asset and wealth management. It's a fraction of what we have globally," Chief Operating Officer (COO) Henry Ritchotte told analysts on Wednesday.

"Not everybody needs their own COO, not everybody needs their own infrastructure. The process of building up businesses so quickly empowered people to do different things. The processes will now be more top down."

Deutsche Bank will radically pare down the number of vendors it uses and seek instead to build fewer strategic relationships, Ritchotte said.

Around 60 percent of staff in London and New York was working in infrastructure rather than client-facing areas, Ritchotte explained, adding that some of this work can be done in Mumbai and other lower cost locations.

Deutsche Bank will cut the 11 layers of management down to 8. Managers currently have an average of 5 people reporting to them, this will be raised to at least 8, the bank said.

Pay will no longer be linked as strongly to job titles, Ritchotte continued.

"We don't want to pay people just because they have a seat. We really need to define exactly what, based on the key performance indicators, this means," Ritchotte said.

RISKY ASSETS CUT

Aside from detailing steps to reduce costs, Deutsche Bank elaborated on how it will reduce the number of risky assets, which would force the bank to hold more capital.

The new non-core segment will house credit portfolios from units Postbank (DPBGn.DE) and Sal. Oppenheim as well as assets including a casino in Las Vegas and Maher Terminals.

The German bank will house 125 billion euros ($160.6 billion) worth of assets which the bank would otherwise have to underpin with more capital as stricter banking rules bite in 2013, Chief Financial Officer Stefan Krause told analysts on Wednesday.

"It will include assets and liabilities - assets which will be hit by Basel III rules and will never deliver sufficient returns," Krause said.

The assets will be ring fenced, as the onset of stricter capital rules make it harder for Deutsche Bank to achieve its new target of after-tax return on equity of 12 percent, Krause said.

(Reporting by Edward Taylor; Editing by Mike Nesbit)

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