Deutsche Bank has introduced a hiring freeze as it seeks to cut costs amid a deep strategic overhaul, a source familiar with the matter told Reuters on Thursday.

Germany's flagship lender on Wednesday sent a memo to managers on the hiring freeze, which excludes the compliance department, the source said.

Deutsche Bank's management is working frantically to restore investor confidence by accelerating a program of cost cutting measures following a U.S. demand to pay up to $14 billion for the misselling of mortgage securities before the financial crisis.

A Deutsche Bank spokesman declined to comment on the memo but referred to an earlier statement explaining that the bank is working on an ongoing headcount reduction plan.