Deutsche Bank CEO Wants to Give Strong Units 'Oxygen to Prosper'

Galtero Lara
Julio 13, 2019

Deutsche Bank said that it would cut 18,000 jobs by 2022 stating to restore consistent profitability and better returns to shareholders.

The job cuts would reduce the workforce to 74,000.

Some Deutsche Bank staff members told Reuters they were called into a brief meeting and told their jobs had been cut. All staff were issued with a letter informing them of their redundancy and then asked to leave nearly immediately.

Deutsche Bank building in Sydney.

Deutsche Bank, which has come under recent scrutiny over its business relationship with Donald Trump, would not reveal how many staff in its United Kingdom operations would be out of work in the latest round of redundancies, although the numbers are expected to be significant as London - where the bank is in the process of constructing a new headquarters - is one of of the lender's largest bases with around 8,000 staff.

Deutsche Bank logo (neon sign) outside of office building in Stuttgart, Germany.

"It's a risky maneuver, but if it succeeds, it has the potential to bring the bank back on course", a person close to one of the top 10 biggest shareholders said.

Two men leave the Deutsche Bank London office with their redundancy envelopes.

At the bank's Wall Street office, staff impacted by the cuts were summoned to the cafeteria to learn of their fate. One source said staff could be seen saying their goodbyes to colleagues upon leaving the cafeteria.

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Hundreds of staff were informed during the meetings that their positions were being cut, sources within the bank told Reuters.

"People have been planning their next moves but it's a tough market", the person said, speaking on condition of anonymity.

In some cases, staff were told that their building passes would be deactivated by the afternoon, with some seen crying as they left the office with boxes and bags.

London city traders were left in tears as dozens reportedly cleared their desks at Deutsche Bank's offices on Monday morning, leaving the office for the last time after the bank slashed thousands of jobs.

With nearly 8,000 staff, London is the home to its biggest trading operation.

The latest plan to relaunch the bank involves closing its equities sales and trading arm, which is essentially a giant stock broking operation that buys and sells publicly-listed shares on behalf of large hedge funds or asset managers.

Deutsche Bank announced on Sunday to significantly downsize its investment banking division and to bundle its corporate customers and transaction bank into a new division called Corporate Bank, both of which would be led by the bank's chief executive officer (CEO) Christian Sewing.

Deutsche spokespeople in Hong Kong and London declined to comment on specific details about the number of departures but said they would try to support people being made redundant.

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