Germany based Deutsche bank that announced plan of restructuring last week following several losses has already started implementing 18,000 job cuts across its branches all over the world. Staff from its share trading divisions located in New York, London and Tokyo was told that their jobs would be gone while some staff from London office did not report for work as their employee passes would stop working mid-day.
A company spokesperson stated that the aim of this change was to reduce its investment banking work and make the bank strong. Though Deutsche bank has not specified complete details of all job cuts in various divisions it has stated that it will close down all activities related to share trading most of which is located in London and New York. The equities business of the bank located in Asia is managed from Hong Kong but the firm’s spokesperson declined to specify the impact of reorganization on employee numbers in Asia.
The bank is one of London’s biggest employers with nearly 8,000 staff and several of them could be seen looking visibly upset outside the office this Monday. While some were sent back home others were asked to wait to know if their jobs were secure for the time being. Of the 800 people that work in its share trading division there is no guarantee about how many will be spared as an employee that had been let off recently stated that jobs for traders in stocks and derivatives have reduced drastically. Deutsche Bank spokesperson stated that they will retain presence in London to partner their UK clients in other financial services. Share price of the bank fell by 5 % early this week after the news of layoffs hit the market. The layoff and reorganization process will cost the bank $8.3 billion within next three year and it announced second quarter loss of € 2.8 billion largely due to this shakeup.