Deutsche Bank to cut 1,000 jobs: sources
07/19/2012| 04:34am US/Eastern
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Deutsche Bank (>> Deutsche Bank AG) aims to cut around 1,000 investment banking jobs in response to tough conditions in capital markets spooked by the euro zone debt crisis, sources familiar with the plans said on Thursday.
Deutsche Bank (>> Deutsche Bank AG) aims to cut around 1,000 investment banking jobs in response to tough conditions in capital markets spooked by the euro zone debt crisis, sources familiar with the plans said on Thursday.
The move is a shift in policy for Germany's flagship lender which in April said it saw no need for job cuts at its investment bank, one of the main profit drivers.
A slowdown in trading activity in the three months to June has forced investment banks including Credit Suisse (>> Credit Suisse Group AG), Goldman Sachs (>> Goldman Sachs Group, Inc.) and UBS (>> UBS AG) to slash staff.
Deutsche Bank's job losses come in addition to a cost-cutting program announced in October, when the bank said it would axe around 500 positions in corporate banking and securities due to a "significant and unabated slowdown in client activity."
The company employed 14,600 staff in corporate and investment banking at the end of the first quarter.
Deutsche is expected to announce the latest job cuts at the end of July, when it reports second-quarter earnings.
The job cuts will fall mainly outside Germany, one of the sources said. They are a reaction to a slowdown in capital markets activity and are not part of a strategy update which co-chiefs Anshu Jain and Juergen Fitschen plan to unveil in September, one of the sources familiar with the plans said.
The outlook for investment banking remains bleak.
A J.P. Morgan report on investment banking in late May forecast a slowdown in trading of fixed-income currency and commodities of up to 32 percent quarter-on-quarter.
Equities trading was expected to fall 14 percent, and credit trading was seen dropping by 35 percent quarter-on-quarter, the report said.
Deutsche Bank declined to comment.
(Reporting by Edward Taylor and Philipp Halstrick; Writing by Victoria Bryan; Editing by Erica Billingham)
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