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Deutsche Bank laid off staff on Monday as it began to cut 18,000 jobs as part of a $ 8.3 billion "reinvention."
Deutsche Bank announced Sunday that it would abandon its global equity operations and reduce some of its fixed income securities.
Shares of Deutsche Bank, which employs nearly 91,500 people worldwide, were slightly lower in Frankfurt, said the bank's chief financial officer, who said there was "significant uncertainty" about its profitability. in 2020.
CEO, Christian Sewing, told reporters at the London office of the bank, where many cuts are expected, that he "was just reinventing" Deutsche Bank, which has been in the red for four years out of five. treated with a series of setbacks.
Bankers who left the Deutsche Bank office in Sydney on Monday said they were fired but not identified because they had to return later to sign layoff plans. Sewing said the cuts in jobs would continue in London and New York.
JPMorgan analysts called the plan "daring and, for the first time, not half-cooked," but questioned the credibility of execution, revenue growth, and employee motivation .
The rating agency Moody's said that Deutsche Bank was facing "significant challenges" to execute the plan quickly and that it would maintain its negative outlook vis-à-vis the bank.
"It's a risky maneuver, but if it succeeds, it will have the potential to put the bank back on track," said a person close to one of the 10 largest shareholders.
Deutsche Bank has not provided a geographical breakdown for job cuts, although most are expected in Europe and the United States.
In Sydney, Hong Kong and elsewhere in the Asia-Pacific region, the work day began with budget cuts and several German bankers announced that entire sales and trading teams were preparing.
A person familiar with the bank's operations in Australia said his team of four in the equity markets was being wound up, but that most members of his mergers and acquisitions team were not immediately affected.
Deutsche Bank was once one of the top 10 banks in the ECM trading rankings in Asia, but it had slipped in recent years, reaching the 17th year last year and the 18th in 2019, according to Refinitiv data. Until this year, it ranks 8th regionally for the activity of M & A.
Deutsche employed some 4,700 people in its main regional offices in Sydney, Tokyo, Hong Kong and Singapore, as the fact sheet on its website showed.
A securities trader laid off in Hong Kong said the mood was "rather gloomy" as people were called to meetings. "They give you this package and you're out of the building," he said.
Several workers left their offices with envelopes with the logo of the bank. Three employees photographed themselves next to the Deutsche Bank logo outside, kissed each other and hailed a taxi.
"If you have a job for me, let me know, but do not ask questions," said a Deutsche employee.
A spokeswoman would not comment on the details, but said the bank would be "as sensitive as possible to implement these changes."
"We are creating a bank that will be more profitable, slimmer, more innovative and more resilient," Sewing wrote in a note sent to staff on Sunday.
The bank will set up a "bad bank" to reduce unwanted assets, with 74 billion euros of risk-weighted assets.
Sewing will represent the investment bank on the board in a shift illustrating the decreasing influence of the division.
The CEO announced the restructuring in May, promising shareholders "strong cuts" to the investment bank. This followed the failure of Deutsche to accept a merger with its competitor Commerzbank AG.
"The new investment bank will be smaller but more resilient and will focus on our financing, capital markets, advisory services, and sales and trading services," said the chief investment officer. the Asia-Pacific region, Werner Steinmueller.
A senior banker, still in office, asked about the competitiveness of the lightened franchise.
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