Two weeks after Deutsche Bank wasted no time at all to lay off 400 US bankers, or roughly 10% of total, as the bank’s post-disastrous earnings purge began, today the purge is accelerating and according to Bloomberg, the biggest European bank is considering a sweeping restructuring, a less scary phrase than “mass termination” in the U.S. “that could result in cutting about 20% of staff in the region” although Bloomberg caveats that a formal decision has not yet been made, the total figure may end up lower.
Some more details from Bloomberg:
Deutsche Bank isn’t targeting a specific level of cuts at the U.S. unit and the final figure will depend on each business line’s decisions, according to another person briefed on the matter. The company had about 10,300 employees in the U.S. at the end of 2017, or about a tenth of its global workforce.
The news follows an earlier report that Deutsche Bank’s Barry Bausano, a senior banker in charge of overseeing the company’s relations with hedge fund clients, was leaving as the firm shakes up its U.S. operations.
When Bloomberg asked the bank about its mass termination plans, bank spokesman Joerg Eigendorf said “There are no such plans,” although considering the billions Deutsche has spent on rigging and manipulation, they may be excused if they are not seen as exactly credible.
Separately, Bloomberg also reports that under its new CEO, Christian Sewing, Deutsche Bank is considering cuts to businesses including prime brokerage, rates and repo,according to a bank statement last month and people familiar with the matter. As reported previously, the firm is already planning to close an office in Houston and shrink its presence in New York City, moving from Wall Street to a midtown Manhattan space that’s 30 percent smaller.