Deutsche Bank Staff sent home as 18,000 jobs are cut.
Staff at Deutsche Bank’s London and New York offices were told to clear their desks and their passes would stop working at 11:00 as the German company cut 18,000 jobs. Workers left the building carrying their belongings, as the bank revealed its global restructuring plans. The staff drowned their sorrows in various ways, while some had a drink at a nearby pub, others were seen picking up a large delivery of pizzas. The company is downsizing by pulling out of activities related to trading shares, much of which takes place in London and New York and is closing its lossmaking equities trading business.
Deutsche Bank has not revealed how many workers in London will be losing their jobs, but its 91,500 global workforce is set to cut down to 74,000. Staff in Frankfurt are also expected to be hit with the job losses, where new labour laws make it easier to terminate high earners employment.
Deutsche Bank are expecting to save £5.4 billion annually with its job cuts, having also made job cuts in Sydney, Hong Kong and across the Asia-Pacific region. ‘This is really sad what is going on right now in the bank, but I guess from top management’s point of view that is what is needed to be done.’ One employee told the Financial Times. Deutsche Bank has stated it will not fire retail employees in Germany against their will until mid-2021.
The Frankfurt based bank has forked out billions in fines and settlements before and after the 2008 financial crash, including a $7.2 billion settlement to the US government over selling mortgage backed bonds to people with poor credit. They were also one of the few banks to lend to Trump after a series of corporate bankruptcies and defaults dating back to the early 90’s. The company has been subpoenaed by two US congressional committees as part of their investigations into Mr Trump and his business dealings.