Deutsche Bank shares rise pre-market as 18,000 global job cuts begin
9 July, 2019, 2:38 am
SYDNEY/HONG KONG (Reuters) – Deutsche Bank (DBKGn.DE) shares rose in pre-market trade on Monday as the German lender eliminated whole teams at its Asian operations, starting to ax 18,000 jobs globally in one of the biggest overhauls at an investment bank since the aftermath of the financial crisis.
The lender announced the job losses on Sunday as part of a restructuring plan that will ultimately cost 7.4 billion euros ($8.3 billion) and see it undo years of work aimed at making its investment bank a major force on Wall Street.
As part of the overhaul, the bank will scrap its global equities business and cut some operations in its fixed income – an area traditionally regarded as one of its strengths.
Shares in Deutsche Bank were indicated to open 5.2% higher at 0548 GMT, according to pre-market data from brokerage Lang & Schwarz.
Deutsche Bank gave no geographic breakdown for the job cuts, though the bulk are widely expected to fall in Europe and the United States. The global day on Monday, however, began with cuts in Sydney, Hong Kong and elsewhere in the Asia-Pacific.
Bankers seen leaving Deutsche Bank’s Sydney office on Monday said they had been laid off, but declined to be identified as they were due to return later to sign redundancy packages.
One person with knowledge of the bank’s Australia operations said its four-strong equity capital markets (ECM) team was also being disbanded. The person also said most of its mergers and acquisitions (M&A) team was not immediately affected.
Entire teams in sales and trading are losing their jobs too, according to several Deutsche bankers.
Regionally, Deutsche used to regularly rank among the top 10 banks in league tables for ECM deals, but it has slipped in recent years, hitting 17th last year and 18th in 2019, Refinitiv data showed. So far this year, it ranks 8th regionally for M&As.
Deutsche had some 4,700 staff at its main regional offices in Sydney, Tokyo, Hong Kong and Singapore, showed factsheets on its website.