Deutsche Bank shares gains on news it could axe up to 500 staff
Deutsche Bank shares are trading in the green, late Monday, amid news the German bank could axe up to 500 staff. The news was first reported by news outlet Bloomberg, with information quickly following from Reuters and the Financial Times.
By 1600 BST, Deutsche Bank shares were 2.28% higher at €13.22. After a tough start to 2018, Deutsche Bank shares have been moving generally, albeit slowly, higher.
Deutsche Bank 2018 staff cuts
Various news reports, citing sources, suggest Deutsche Bank will cut between 250-500 mid-senior level staff across multiple regions in its investment banking division. Those regions include the US and London.
Some mid-range bankers have already been handed their notice, the reports say. Meanwhile, further notice hand-outs are expected ahead of the bank’s March bonus round.
The move is said to be part of the bank’s ongoing cost-cutting efforts and plans to reduce its staff headcount by 9,000. The planned staff reductions don’t reflect the company’s current business trading activity levels.
Bloomberg’s report included some specific details, including that some cuts have already been made in the corporate finance unit for EMEA. The departures are also said to include co-head of UK corporate broking Andrew Tusa is said to have been axed, along with Jonathan Gold, a senior financial institutions banker in London.
Deutsche Bank has been struggling to cut costs at the rate it initially planned. CEO John Cryan said at the release of the Frankfurt-based bank’s 2017 results, that it would not achieve its 2018 cost-cutting targets.
Bank in City of London planning debate
Meanwhile, Deutsche Bank’s planned move to a City of London building may be thrown into doubt, as residents near its intended headquarters in Moorgate have complained about some changes to its original plans.
The complaints relate to Deutsche Bank’s requirement to move the entrance to its service yard to make it easier to use a number plate recognition system.
Residents have complained about the increased potential for noise, pollution, a lack of parking and loss of natural light.
The planning permission change is due to be discussed at a City of London Planning Committee Meeting Tuesday, February 20th.
