Deutsche Bank axes 18,000 jobs, as the struggling German lender announced a dramatic restructuring that is expected to cost over $8 billion. More here:
The United States had been seen as a likely focus of the cuts although the bank maintained it wants to keep a significant presence, in part to service European corporate clients doing business in the country. However, some shareholders have pushed for a full U.S. retreat.“We will retain a significant presence here and remain a close partner to our U.S. clients and to international institutions that want to access the U.S. market,” it said in an emailed statement.
“I was terminated this morning. There was a very quick meeting and that was it,” said one information technology employee, who had been working on a project for more than two years.Bankers leaving Deutsche Bank’s Sydney, Australia, office also said they had been fired but declined to be identified because they were returning later to sign severance packages.
“It’s a risky manoeuvre, but if it succeeds, it has the potential to bring the bank back on course,” said a person close to one of the top 10 shareholders. Big cuts to its investment bank reverse a decades-long expansion that began with its purchase of Morgan Grenfell in London in 1989 and continued a decade later with a takeover of Bankers Trust in the United States.
As part of the overhaul, Deutsche Bank will set up a so-called “bad bank” to wind down unwanted assets, with 74 billion euros of risk-weighted assets.Deutsche Bank did not give details on the job cuts, but said they would be spread around the globe, including in Germany. Deutsche Bank had slipped in recent years in Asia, hitting 17th last year and 18th in 2019, Refinitiv data showed. So far this year, it ranks 8th regionally for merger-and-acquisition activity.
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