deutsche bank considers thousands more job cuts
Last Updated : GMT 05:21:58
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 05:21:58
Arab Today, arab today

Deutsche Bank considers thousands more job cuts

Arab Today, arab today

Arab Today, arab today Deutsche Bank considers thousands more job cuts

A Deutsche Bank banner is pictured in front of the German share price index at the stock exchange in Frankfurt.
Frankfurt - Arab Today

Deutsche Bank’s finance chief told staff representatives last month that job cuts at the bank could be double that planned, a step that could remove 10,000 further employees, said a person with direct knowledge of the matter.
Although no such decision has yet been taken, Marcus Schenck’s remarks, at an internal meeting, signal the lender is considering further significant cost cuts, as it faces a multi-billion-euro fine and a crisis of confidence among investors.
“Schenck said that the bank would need to cut another 10,000 staff to bring down costs,” said a person who attended the meeting with the chief financial officer.
Deutsche Bank declined to comment.
Such cuts, if agreed, would likely take many years but setting such a goal could reassure investors that the bank is determined to tackle costs that sources said the European Central Bank sees as bloated.
If 10,000 job losses were ultimately to follow the 9,000 announced by management in October 2015, roughly one in five of the bank’s workforce around the globe would be affected.
Deutsche has been engulfed in crisis since news emerged last month of a US Department of Justice demand for a $14 billion settlement over the sale of toxic mortgage bonds before the global financial crisis. It is fighting the fine but could have to turn to investors for more money if it is imposed in full.
The discussion about further job cuts comes as Deutsche’s chief executive, John Cryan, reassesses a year-old strategy to revive the flagging group, as ebbing market confidence sends its stock price tumbling and prompts some customers to withdraw funds..
A second person familiar with these discussions said the management was also examining the countries where the bank was active to see “whether it was really worth its while (staying in those countries).”

PROFIT DOWN, HEADCOUNT UP

Cryan too hinted at steeper cuts at the end of August, when he told a conference that Deutsche’s staff should be between 25 and 30 percent lower, pointing to lean rivals.
Commerzbank, a far smaller German rival, recently announced it would axe more than a fifth of its workforce — almost 10,000 staff.
But given potential high severance costs and revenue losses, it remains unclear whether a further attempt by Deutsche to trim staff can be achieved.
Headcount has actually risen at the bank, despite the plans announced by Cryan in October 2015 to slash staff. Employee numbers, which stood at more than 101,300 in the middle of this year, are higher than the roughly 98,600 one year earlier.
One hurdle in removing staff is that many are based in Germany, where strict labor law makes it difficult and expensive to fire employees. Of the 9,000 job cuts announced in October 2015, 4,000 are in Germany.
In Germany, unlike Britain, for instance, labor representatives have an important say and appoint non-executive directors to Deutsche’s supervisory board. They will argue for fewer cuts.
An additional downside to shrinking the workforce is that it could sap revenue.
Regardless of this, however, the heavy fine demanded by the US authorities could prompt Cryan to act.
Once Germany’s only bank to go head-to-head with US rivals on Wall Street, stricter regulation, rock-bottom borrowing costs and still heavy costs has squeezed Deutsche’s profits.
Politicians in Germany, who are preparing for national elections in 2017, are watching developments nervously.
They are worried that the state could ultimately be called on to support the lender, widely disliked among ordinary Germans for its aggressive pursuit of success on Wall Street.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

deutsche bank considers thousands more job cuts deutsche bank considers thousands more job cuts

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

deutsche bank considers thousands more job cuts deutsche bank considers thousands more job cuts

 



Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation

GMT 02:04 2017 Wednesday ,06 September

April21st-May21st

GMT 20:19 2017 Friday ,24 November

'Trash islands' off Central America indicate

GMT 19:29 2016 Wednesday ,25 May

Lynette Cushion Green

GMT 15:50 2015 Wednesday ,09 December

South Sinai marks martyrdom of Saint Catherine

GMT 20:28 2017 Monday ,13 February

Ramy Rabia aspires to return to pitch

GMT 03:36 2017 Tuesday ,25 July

Indonesia to build military bases in Natuna

GMT 09:32 2016 Wednesday ,28 September

As Indonesian volcano erupts

GMT 18:35 2017 Tuesday ,24 January

Footballer Bin Attiya described Ivory Coast

GMT 16:13 2015 Thursday ,03 September

British Muslims join calls for compassionate response

GMT 13:17 2016 Sunday ,14 February

Wales secure ninth straight win over Scotland

GMT 00:54 2018 Thursday ,18 January

Ellen Pompeo to continue 'Grey's Anatomy'
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday