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Uncertainty for Irish workers as Deutsche Bank to slash 18,000 jobs worldwide

Deutsche Bank currently employs over 650 people in Dublin.

Image: Shutterstock/Vytautas Kielaitis

GERMANY’S BIGGEST LENDER Deutsche Bank has said it will cut 18,000 jobs by 2022 but would not disclose how many Irish jobs are at risk.

Deutsche Bank (DB) currently employs over 650 people in its Dublin office, having been in Ireland since 1991. 

The German lender has declined to clarify the impact the cuts will have in Ireland with a spokesperson telling TheJournal.ie it would “not be disclosing the headcount reduction split by region”. 

The bank announced yesterday it was “radically transforming its business model to become more profitable, improve shareholder returns and drive long-term growth.

“To execute its transformation, the bank will significantly downsize its investment bank and aims to cut total costs by a quarter by 2022.”

The bank said the global layoffs would reduce annual costs by €6 billion over the next three years. 

The Guardian has reported that some staff in Deutsche Bank’s London offices have been told to “clear their desks this morning before their security passes are deactivated”.

‘A restart’ 

Chief executive Christian Sewing announced the cuts yesterday as a “fundamental transformation,” dubbing the restructuring scheme “a restart for Deutsche Bank”.

The new round of job cuts comes on top of some 6,000 already carried out over the past year.

The restructuring could be a last chance for DB after much-hyped merger talks with rival Commerzbank fell through earlier this year.

Over the past four years, the firm’s market capitalisation has fallen by 75%, making it a potential target for takeovers.

Yesterday’s announcement also targetted its investment banking unit.

DB said it will stop almost all share trading activity, and is in talks with France’s BNP Paribas to sell off some of its business and staff in the field.

On Friday, Garth Ritchie, the head of DB’s South African investment banking unit, was first out of the door.

The unit’s business had fallen back by 20% in the first quarter of 2018, and it was no longer bringing in the profits of former years.

Especially in the US, it was for years plagued by lawsuits and scandals, including some linked to the so-called “Panama Papers” leak of sensitive documents about offshore dealings.

On top of the rank-and-file cuts, DB is also rebuilding its board, sending away compliance chief Sylvie Matherat and two other executives.

The group will also create a so-called “bad bank” unit to host some 74 billion euros of low-quality assets, notably those linked to derivatives transactions – highly speculative financial products.

With reporting from © – AFP 2019

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