STAFF at Deutsche Bank’s London office were seen leaving the building clutching bags and boxes just hours after the lender announced restructuring plans that would see 18,000 jobs axed worldwide.
But why are the jobs being cut and how many people in the UK will be affected? Here’s what we know so far.
5 Staff in London were told to clear their desks by 11am todayCredit: Reuters
Why are Deutsche Bank cutting jobs?
Yesterday, it revealed that it would axe thousands of jobs worldwide by 2022 to in a bid to turn around the struggling lender.
The total job losses will cut the workforce by a fifth.
Yesterday, the bank also said that it will scrap its global equities business and scale back its investment bank.
It expects a 2.8 billion euro ($3.1 billion) net loss in the second quarter as a result of the restructure.
Deutsche plans to cut its fixed income operations, especially its rates business, and create a new unit to “wind-down” unwanted assets, with a value of 74billion euros of risk-weighted assets.
The pledge came after Deutsche failed to agree a merger with rival Commerzbank.
5 Deutsche Bank has said it will cut 18,000 jobs over the next three yearsCredit: AP:Associated Press
The German government had backed the merger and believed it would create a national champion in the banking industry, but both firms backed out after agreeing it would be too risky.
Reports ahead of the decision had suggested that Deutsche Bank could cut as many as 20,000 jobs.
The bank had previously suggested it would reduce headcount to 74,000 employees by 2022.
The lender’s supervisory board met on earlier today to agree the proposed changes, one of the biggest shake-ups in the industry since the financial crisis.
Christian Sewing, Chief Executive Officer of Deutsche Bank, said that the lender “remains committed to [its] global network”.
He added: “We are tackling what is necessary to unleash our true potential: our business model, costs, capital and the management team.
“We are building on our strengths. This is a restart for Deutsche Bank – for the long-term benefit of our clients, employees, investors and society.”
5 Staff take in pizza delivery at lunchtime as some workers are told that their jobs have been axedCredit: PA:Press Association
How many people in the UK will be affected?
The investment bank, which employs more than 91,500 worldwide, has over 8,000 staff in the UK, although it would not say how many of them would lose their job.
Sources told the Mail that it could be as many as 3,200, with one IT contractor at the London Wall office claiming that 100 people were made redundant from a single floor.
Some workers were “told to leave their desks by 11am” this morning, while others were seen crying as they were told that their building passes would be deactivated today, reports The Daily Mail.
The Telegraph’s banking editor Lucy Burton tweeted earlier today: “‘Some Deutsche Bank staff in London told they have until 11am to pack up their stuff, just hours after the overhaul was announced.
“”I’m trying to get my head straight,” says one person who has been told his pass will stop working in a few hours.”
5 Staff members look out of the windows at Deutsche Banks London officesCredit: Getty Images – Getty
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What about the rest of the world?
The New York offices are expected to be hit hard by the job cuts too, with one employee telling US outlet eFinancial News: “9.30am is when most people in my division have been asked to report to the auditorium to be fired.”
The lender has insisted that involuntary job cuts in Germany won’t start until mid-2021.
5 Members of staff were photographed leaving the building carrying bags and boxesCredit: Getty Images – Getty
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