Deutsche Bank to cut 18000 jobs in 7.4 billion euro overhaul

Marco Green
July 13, 2019

Deutsche said it does not plan to raise capital to fund the revamp, which is expected to cost 7.4 billion euros by 2022, and will finance much of that cost by not paying dividends for the next two years.

The cuts will fall hardest on the investment bank which is being radically downsized - 40% of its trading staff in the investment bank are going, 74 billion euros worth of dud loans are being placed into a bad bank and run down and billions will be spend on redundancy.

Deutsche Bank used to rank among the top 10 banks in league tables for ECM deals in Asia, but had slipped in recent years, hitting 17th last year and 18th in 2019, Refinitiv data showed.

Deutsche Bank is yet to specify exactly where jobs will be lost.

The Guardian reported how 100 people had been made redundant on the fourth floor while some members of staff were seen leaving the office in tears.

"This is a restart for Deutsche Bank".

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.

"I am personally putting my money where my mouth is" Deutsche Bank CEO, Christian Sewing, told analyst at a London presentation, claiming he would tie the fate of his fortunes closer to that of the the bank's.

Deutsche Bank confirmed on Sunday it was closing parts of its trading businesses, with staff in its equities division in Sydney and Hong Kong among the first to be told their roles would go.

Following the raid, the bank said that it has "no concrete evidence that would support the allegations against us or any of our employees".

Several workers left offices holding envelopes with the bank's logo.

"They give you this packet and you are out of the building", said one equities trader.

Speaking outside the bank's office, one employee told Reuters the cuts had been anticipated for weeks.

A woman leaving the New York Deutsche Bank offices with a pot plant. They also received details of their redundancy packages.

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

Few staff wanted to speak outside the bank's London office, but trade was picking up at the nearby Balls Brothers pub around lunchtime.

Chief Executive Christian Sewing told journalists from the bank's London office, where numerous cuts are expected, that he was "doing nothing short of reinventing" Deutsche Bank, which will have been in the red for four out of the past five years as it dealt with a series of setbacks.

Other reports by Click Lancashire

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