Deutsche Bank to lay off 18,000

Big ax falls as Deutsche Bank to lay off 18,000 in $8.3 billion 'reinvention'


FRANKFURT/SYDNEY/HONG KONG/NEW YORK (Reuters) - Deutsche Bank laid off staff from Sydney to New York on Monday as it began to slash 18,000 jobs in a 7.4 billion euro ($8.3 billion) “reinvention” that will lead to yet another annual loss, a plan that knocked its already battered shares.

Germany’s largest lender said on Sunday it will scrap its global equities unit and cut some fixed-income operations in a retreat from a long-held ambition to make its struggling investment bank, with 38,000 staff, a force on Wall Street. Deutsche Bank has almost 91,500 staff around the world.

Its shares erased early gains and closed down 5.4% in Frankfurt after its finance chief flagged “significant uncertainty” over breaking even in 2020. Its bonds also fell. U.S.-listed shares dropped 6.1%.

Some analysts were skeptical that the bank could grow future earnings quickly enough to reach a new target to achieve a return on tangible equity of 8% by 2022, compared with a negative return last year.

“The question of where the real earnings power will come from for Deutsche Bank going forward has not been answered,” said David Hendler, an independent analyst at New York-based Viola Risk Advisors. “It’s doubtful whether they will be able to build a better bank in just three years.”

Ratings agency Fitch said that the bank’s future credit rating will depend on how successfully it executes the plan. Fitch downgraded the bank to “BBB” status, the lowest investment-grade status, just last month.

“The restructuring measures involve large staff cuts and significant leadership changes, which could disrupt the aim to improve core earnings,” it said in a note published Monday.

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https://www.reuters.com/article/us-d...-idUSKCN1U309P

Is it a reinvention or a restructure?

More like too-big-to-fail fcuking with reality!

Hope it doesn't affect Trumps money laundering.

Deutsche Bank bosses fitted for £1,200 suits as thousands lose their jobs

Tailors visited executives at London office on day 18,000 staff cuts were announced

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The tailors Alex Riley, left, and Ian Fielding-Calcutt carry suitbags outside the Deutsche Bank building in the City of London. Photograph: Simon Dawson/Reuters

On the day Deutsche Bank began making thousands of employees redundant, some managing directors at the company’s office in the City of London were being fitted for suits that cost at least £1,200, it has emerged.

Tailors from Fielding & Nicholson, an upmarket tailor, were pictured walking out of the bank’s office with suit bags on Monday. Ian Fielding-Calcutt, the tailor’s founder, and Alex Riley were there to fit suits for senior managers in spite of plans to cut 18,000 jobs worldwide.

Germany’s biggest bank has started the first wave of cuts that some recruiters have predicted could lead to as many as 3,000 job losses in London, where it employs about 7,000 people. Some laid-off staff were reported to be in tears before leaving the building for the last time.

“Our timing was not great,” Fielding-Calcutt told Financial News. “I think a lot of the people getting laid off were traders of some sort, who don’t wear suits, and so we just went ahead as normal with our clients who obviously weren’t affected by the cuts.”

Fielding & Nicholson suits take up to eight weeks to make. Prices start at £1,200 and can go as high as the customer chooses, an employee said.

The image of top managers being fitted for luxury suits while other employees, including contract workers and support staff, were laid off was not what Deutsche wanted. Its chief executive, Christian Sewing, visited London on Monday and repeatedly said how much he regretted the decision to scrap a fifth of his global workforce.

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https://www.theguardian.com/business...st-jobs-london