On Monday (8 July), Deutsche Bank dropped a bombshell when it axed 18,000 employees from its global workforce. Offices as far afield as Hong Kong, Sydney and New York were hit, in what the German investment bank has called a 7.4 billion euro (US$8.3 billion) “reinvention”.
Hundreds of employees at the German lender’s Wall Street office in New York were summoned to the company cafeteria on Monday morning to be told of the bad news, it was reported on Reuters.
During one-on-one meetings with senior management and human resources, employees were informed of their redundancies and advised of their severance terms.
In Hong Kong, one laid-off equities trader said the mood was “pretty gloomy” as people were called into meetings, it was reported on the Business Standard website.
“They give you this packet and you are out of the building,” he said.
In London, where more job cuts were anticipated, Deutsche Bank CEO Christian Sewing said he was “reinventing” the bank.
“We are creating a bank that will be more profitable, leaner, more innovative and more resilient,” he was reported as saying on Sunday.
Deutsche Bank – established in 1870 – had a global workforce of 91,500 before Monday. The job cuts represent almost 20% of its entire workforce.
The German investment bank had been one of the few European banks to keep a significant presence in the United States following the global financial crisis (2007-2009). But it has since found it difficult to compete with its US rivals, driven by regulatory investigations and litigation.