This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/2015/oct/29/city-braced-job-cuts-deutsche-bank
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| City braced for major job losses at Deutsche Bank | |
| (34 minutes later) | |
| Heavy job losses are feared in the City of London after Deutsche Bank set out plans to boost its performance by axing 15,000 roles and selling off operations employing a further 20,000. | |
| The move comes as the new boss, John Cryan, conceded that Germany’s biggest bank would not pay a dividend for two years as it battled to restore its fortunes after being stung by legal costs and fines. The bank also faces investigations over alleged Russian money laundering. | |
| Cryan previously announced a restructuring of the investment bank, which employs thousands in the the capital’s financial district, after a €6bn (£4.4bn) loss in the third quarter. The loss was caused by the sale of its Postbank retail banking division, a €600m writedown on the value of its 20% stake in China’s Hua Xia Bank, and €1.2bn in litigation costs. | |
| Deutsche will close operations in 10 countries – Argentina, Chile, Mexico, Peru, Uruguay, Denmark, Finland, Norway, Malta, and New Zealand – and halve the number of customers in its investment bank because 30% of them produce 80% of the revenue. | Deutsche will close operations in 10 countries – Argentina, Chile, Mexico, Peru, Uruguay, Denmark, Finland, Norway, Malta, and New Zealand – and halve the number of customers in its investment bank because 30% of them produce 80% of the revenue. |
| Approximately 15,000 roles will go, including 6,000 contractors, while the workforce will fall by a further 20,000 as businesses are sold off. The aim is to achieve savings of €3.8bn although the changes will cost up to €3.5bn to implement. According to reports, the 9,000 full-time roles being lost equates to 10% of the workforce, while the number of contractors targeted equates to 20% of the total. | |
| Cryan promised to tackle the job cuts sensitively. “This is never an easy task, and we will not do so lightly,” he said. | Cryan promised to tackle the job cuts sensitively. “This is never an easy task, and we will not do so lightly,” he said. |
| A British banker, Cryan became chief executive in July, replacing Anshu Jain, who spent 20 years developing a major investment banking operation. | A British banker, Cryan became chief executive in July, replacing Anshu Jain, who spent 20 years developing a major investment banking operation. |
| Reuters reported that Cryan delivered his presentation in German, in contrast to Jain who had faced criticism for speaking English. | Reuters reported that Cryan delivered his presentation in German, in contrast to Jain who had faced criticism for speaking English. |