Deutsche Bank likely to axe 1,000 US jobs

FRANKFURT: Deutsche Bank is expected to cut around 1,000 jobs or 10 per cent of its workforce in the United States, a person familiar with the matter said on Friday, as the German lender scales back its global investment banking ambitions. The bank has already axed 400 US-based employees this week —of which around three quarters worked in its trading business and the rest in corporate finance, according to a second source who is a senior US-based Deutsche Bank official. “I can tell you that the people who make money here will continue to get paid and be supported, because Deutsche Bank needs the revenue,” the banker said. “The challenge now is to keep our people.”

Both sources spoke on condition of anonymity. On Thursday, the bank announced that it would make “significant” cuts at its investment bank, scaling back its corporate finance operations in the United States and Asia, US government bond trading, and equities. It did not provide specific numbers or a timeframe. “We do not see increased fluctuation in the core areas of the bank,” the bank said in a statement e-mailed to Reuters on Friday. “Europe is the region in which we want to expand our market position. Here we want to grow and gain market share. Especially in Europe, we are the first choice for many investment bankers.” The credit ratings agency Moody’s on Friday changed its outlook to “negative” on some of its Deutsche Bank ratings. — Reuters