Discover the extensive implications of Deutsche Banks restructuring in London. Uncover how this decision will lead to substantial job losses for thousands of investment bankers, and gain a deeper understanding of its impact on London’s financial hub. Brace yourself for the far-reaching consequences of this major shakeup in the financial industry.
Explore the far-reaching implications and potential consequences of Deutsche Bank’s decision to downsize its investment banking operations in London. Find out how this major shake-up in the financial industry will result in significant job losses for thousands of investment bankers, and gain a deeper understanding of the effects it will have on London’s financial hub.
Deutsche Bank is axing 7,000 jobs globally and a big chunk of those redundancies are likely to be at its investment banking business in the City of London.
This morning, Deutsche which is one of the largest employers in the City said it would be axing one in four investment banking jobs. Most of the banks investment bankers are located in New York and London. The bank currently has a global workforce of around 97,000.
Shareholders have long been upset with Deutsche, which has posted big losses over the past three years. The bank appointed a new CEO in April, Christian Sewing, and this appears to be his first attempt to cut costs and bring the group back to profitability.
Speaking ahead of the banking groups annual shareholder meeting today, Sewing said, we must concentrate on what we truly do well, referring to the banks strongholds of retail and business banking. It wont do us any harm to be a bit more boring.
Investment banking was relatively recent dalliance for Deutsche Bank; it had hoped to expand rapidly and compete with American investment banking giants like Goldman Sachs and JP Morgan Chase a dream that now seems to be dead.
At the shareholder meeting, Sewing said that the job cuts are already fully underway, and that six hundred investment bankers have left Deutsche in the last seven weeks.
Deutsches shares dropped 0.7% to €10.80 this morning following the announcement, suggesting investors arent fully on board with Sewings plans. With so many of Deutsches investment bankers located in London, compounded with continued Brexit uncertainty, the job cuts are likely to affect the UK economy.
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Deutsche Bank’s Restructuring in London
