Thursday, 2 December 2021

Deutsche Bank shares rise as 18,000 global job cuts begin

Reuters

Deutsche Bank shares rose on Monday as it launched one of the biggest overhauls of its investment bank since the financial crisis by cutting 18,000 jobs around the world, starting the day with cuts in Asia.

The lender announced the job losses on Sunday as part of a restructuring plan that will cost 7.4 billion euros ($8.3 billion) and see it undo years of work that had aimed to make its investment bank a major force on Wall Street.

As part of the overhaul, the bank will scrap its global equities business and cut some operations in its fixed income, an area traditionally regarded as one of its strengths.

Shares in Deutsche Bank were up 4.7% in Frankfurt at 0625 GMT, according to data from brokerage Lang & Schwarz.

Deutsche Bank gave no geographic breakdown for the job cuts, though the bulk are widely expected to fall in Europe and the United States. The global working day on Monday began with cuts in Sydney, Hong Kong and elsewhere in the Asia-Pacific.

Bankers seen leaving Deutsche Bank’s Sydney office on Monday said they had been laid off, but declined to be identified as they were due to return later to sign redundancy packages.

One person with knowledge of the bank’s Australia operations said its four-strong equity capital markets (ECM) team was also being disbanded. But the person also said most of its mergers and acquisitions (M&A) team was not immediately affected.

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