Photo by Elliott Brown from Flickr
Last Thursday, Deutsche Bank, the biggest lender of Germany, said that it would slash 7,000 jobs and “significantly reshape” its trading and sales business, the latest sign of the curtailed ambitions of the bank as it attempts to move past a series of crises.
Reportedly, Deutsche Bank has begun cutting some of its top investment bankers in London as the German lender launches a dramatic downsizing of its operations.
Unnamed sources informed Reuters that a team of 10 emerging markets bankers have already been let go by the bank.
The team was led by Philipp von Danwitz, an 18-year Deutsche veteran. This week, they were informed as the lender confirmed its plans to cut more than 7,000 jobs globally.
Deutsche aims to decrease the number of full-time positions from just more than 97,000 to “well below” 90,000 as a part of larger work within the company to reduce costs and head to a return to profit.
Christian Sewing, the new chief executive of the bank stated: “We remain committed to our corporate and investment bank and our international presence – we are unwavering in that.”
He added: “We are Europe’s alternative in the international financing and capital markets business. However, we must concentrate on what we truly do well.”
Sewing was appointed to take the place of John Cryan, the former boss of Deutsche Bank in April after the latter came under immense pressure with the third consecutive year of losses for the lender in 2017. Sewing is the fourth person in four years to possess the title or that of a co-chief executive at the bank.
The bank will reduce its headcount in its equities sales and trading business by approximately 25 percent, and in prime finance, Deutsche also aims to reduce leverage exposure by a quarter. It will be equivalent to a reduction of about €50bn.
Deutsche Bank refused to issue a comment on the reports of London bankers being let go.