by Alex Christoforou, The Duran:
The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss Deutsche Bank’s 18,000 job cuts by 2022, as part of a sweeping overhaul at the ailing German bank, which is transitioning out of high-risk investment banking.
Deutsche Bank staff from Australia, Asia and the United States were notified of the massive lay-offs as they arrived for work, and were later photographed leaving their offices with large envelopes and boxes of their belongings.
Germany’s biggest bank is cutting roughly one-fifth of its workforce, reducing its headcount to 74,000 employees, in an effort to cut annual costs by six billion euros and return to profitability. This fresh round of job cuts comes on top of some 6,000 jobs slashed over this past year.
This latest restructuring effort could be a last chance gasp for Deutsche Bank, after merger talks with Frankfurt rival Commerzbank fell through earlier this year.
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At the end of the day, all of the frenzied whispers in the press about Deutsche Bank CEO Christian Sewing’s sweeping restructuring hardly did it justice. Instead of moving slowly, the bank started herding hundreds of employees into meetings with HR, first in its offices in Asia (Hong Kong, Sydney), then London (which got hit particularly hard) then New York City.
By some accounts, it was the largest mass banker firing since the collapse of Lehman, which left nearly 30,000 employees in New York City jobless. Although the American economy is doing comparatively well relative to Europe, across the world, DB employees might struggle to find work again in their same field.
According to Bloomberg, automation and cuts have left most investment banks much leaner than they were before the crisis, and the contracting hedge fund industry, which once poached employees from DB’s equities business, isn’t much help. Some employees will inevitably find their way to Evercore, Blackstone – boutique investment banks and private equity are two of the industry’s top growth areas – or family offices, which, thanks to the never-ending rally in asset prices (and the return of bitcoin), are also booming.