Over 10,000 jobs at risk at Deutsche Bank
31 May 2018
In the last two and a half years, Deutsche Bank has slashed 6,000 jobs and closed 188 branches. Now the global workforce of 97,000 is to be further reduced to “well below 90,000,” the newly appointed chief executive of the bank, Christian Sewing, told shareholders at a meeting last week.
Some shareholders, pointing out that rival banks compete with half the staff, clearly expect even more layoffs. The Handelsblatt business paper quoted internal sources who remarked, “Behind closed doors the target figure (for total staff) is more like 85,000.”
Last weekend witnessed the legal completion of the merger between the private and corporate businesses of Deutsche Bank and Postbank, which is also expected to be the prelude to further job cuts. The new company, with the name “DB Privat-und Firmenkundenbank AG,” will be based at Deutsche Banks’ Frankfurt headquarters. Financial circles anticipate a reduction in staff of around 15 percent.
An annual reduction of 1,500 jobs at Postbank over the next four years is already in process. Employees will be forced to “voluntarily” quit their jobs over the next four years via redundancy programs and the non-replacement of vacant posts. The contractually agreed protection against dismissal is due to expire in mid-2021 and the entire program resembles a form of blackmail.
A large proportion of the redundancies are planned in Deutsche Bank’s investment sector, from which the bank plans to withdraw after realigning its strategy. Some 600 investment bankers in the United States have already left the bank in the course of the past seven weeks. In the US there is no protection against dismissal. In all, the bank will provide €800 million for severance…