Recent reports have revealed that German banking and financial services company Deutsche Bank would now be cutting around 500 investment banking jobs. Previous reports have named various individuals in relation to being at risk redundancy or those whose positions were concluded by the company to be not needed anymore.
By the end of December last year, Deutsche Bank’s corporate and investment bank had around 41,000 staff which is 1,700 more than the previous year with around 17,251 comprised of its front-office staff.
These individuals identified included Europe, Middle East and Africa co-head of financial institutions Jonathan Gold as well as European energy investment banking head Marc Benton, UK corporate broking co-head Andrew Tusa, and Evans Haji-Touma who was known to have advised sovereign wealth and public pension funds.
Outside Europe, others have also stated names including US head of global transaction banking Paul Saltzman who was set to leave next month while Asia-Pacific financial head of financial sponsors Mohamed Atmani have been confirmed by Deutsche Bank to be leaving the company soon.
Deutsche Bank is also expected to make further cuts not just on its investment banks but also on its debt capital markets business located in Birmingham. The announcement comes after the company posted a decline in its revenues from its investment banks which has lost around 15% to $14.23 billion over the past year.
However, compensation and benefits of the company have risen by 8% to $4.26 billion after Deutsche Bank chief executive John Cryan announced last year that it will not be paying bonuses. Cryan has then changed the policy and has pressured the bank for other ways that it would be able to cut costs. The bank is set to inform its staff next month of bonus awards as well as its annual report.
Earlier this month, Deutsche Bank delivered its full-year earnings report posting massive losses of around $621 million for the whole 2017 or €497 million largely exceeding most analyst estimates of €290 million in losses.
The German lender was affected by the mostly flat stock market along with a weak investment bank revenue as well as a charge of $1.8 billion due to the U.S. tax overhaul. While the tax reform has affected the financial numbers of the bank, the U.S. federal tax rate is expected to affect the net income of the bank positively in the future.
The financial company has suffered over the past year due to the settlement on claims of money laundering from the U.S. Federal Reserve which cost the company hundred and millions of dollars in fines last year.
From Deutsche Bank’s current plans to cut hundreds of positions on its investment banking department, the company has begun cutting a number of its operations since last year starting with selling its Polish operations and an effort to boost its capital.
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