Deutsche Asset Management (DeAM) is shedding 400 jobs, equivalent to 10% of its workforce.
The restructuring will partly result from its acquisition of US-based investment manager Scudder Investments, which has led to surplus capacity in several areas.
Deutsche Bank also wants to reverse a recent plunge in profits at its asset management divisions.
Japan is one region where fund management staff are likely to be rationalised, as are peripheral areas such as Australia.
Cutbacks are also likely in the US following the decision of DeAM chief Mike Philipp to increase spending in the region just ahead of the market slump. Philipp himself is paid more than $20m (€23.2m) a year.
The rationalisations will form part of a 3,300 job-cut programme at Deutsche's private client and asset management division.
The bulk of the cuts, however, will fall on Deutsche's retail banking division.
DeAM's core fixed income, UK equity, European equity and global equity businesses are likely to escape with minimal cuts.
Analysts do not believe that more than 50 positions will be lost, mainly at a junior level.
Germany's DWS fund management operation is also likely to emerge relatively unscathed.
A Deutsche spokesman pointed out that DWS is an important profits motor.
Certain individuals at DWS are critical of the way other parts of Deutsche act as a drain on its revenues.
UK consultants have been cheered by an upbeat assessment of the Scudder deal by active equity chief Karl Sternberg.
But Watson Wyatt has suggested that clients should not hire DeAM until rationalisation is sorted out.
Rolf Breuer, the head of Deutsche Bank, met with several shareholders last week and said that asset management can be made to replicate the success experienced by his investment banking division.
He has dismissed talk that he may retire early as 'absolute nonsense'.