From Asia to the United States, employees of Deutsche Bank, some dark mine, began to make their cards on Monday, after the new shock of the most massive restructuring plan in the history of the first German bank including the removal 18,000 jobs.
With large white envelopes in hand, New York employees were leaving the US headquarters of the German establishment, in the heart of the financial district south of Manhattan. Others arrived with bags to collect their belongings.
Faced with media clinging to the main entrance of the building, an employee ironically apologized for not being able to offer the same images as the fall of the American bank Lehman Brothers in September 2008. The media had filmed the latter leaving, boxes in hand, the offices of the establishment.
On Monday, the phone of employees not affected by cuts at Deutsche Bank did not stop ringing, told a banker in New York a Deutsche Bank of New York. The calls came for most customers, worried about their business and investments.
“My answer was to tell them that nothing has changed,” he says, relieved to see that his business has been spared by the restructuring. If he says he does not know one of the dismissed colleagues, this banker believes that the defeat of the German bank is because of poor strategic choices.
“This is proof once again that the current strategy has failed,” he lambasted, saying not knowing if this austerity cure will be the last or not. “No one can say if it’s over or not.”
– The action collapses –
The action of the German giant fell to 6.66 euros before closing down 5.39% to 6.79 euros on the Frankfurt Stock Exchange, after the announcement Sunday of the removal of 18,000 jobs here to 2022.
Deutsche Bank is taking a break from the prestigious activity of investment banking (trading and advice in mergers and acquisitions) which has been its priority since the 1990s.
We need to focus on where we are most competitive (…) and bring oxygen to our strongest activities by pulling out of the others, Christian Sewing, CEO of the company, told reporters Monday. Frankfurt Institute.
“We need to do more than reduce the scope as in the past,” he said before heading to London offices where severance pay was distributed.
Several analysts say it was time to stop the damage, the German bank has not really stolen market shares to the Wall Street giants (Goldman Sachs, JPMorgan Chase, Morgan Stanley …).
“Even if we consider that the reduction of its capital reserves is negative, we believe that the longer-term recovery plan is essential for the bank,” said ING analyst Suvi Platerink Kosonen.
The restructuring, which will affect the entire world, was first felt in Asia, where the bank ends its activities in Sydney and Bombay.
In the City of London, the nerve center of financial investments, we saw the dismissed employees leaving the building with boxes and bags containing their belongings.
It worried several about a future already complicated by the exit of the United Kingdom from the European Union, scheduled for October 31.
“It’s a bad time to look for work with the lull in the summer and poor market conditions,” said Joseph Leung, associate director at Aubreck Leung, an executive search firm, Bloomberg News. in London.
“That said, employees who leave Deutsche Bank may be attractive because they will be available immediately they will probably have to take time off and will have no notice period,” he explained.
Deutsche Bank has decided to cut about a fifth of its workforce to 74,000, in order to save 6 billion euros per year.
These cuts are besides some 6,000 already made last year.
Seth Statnick was born and raised in California but moved east when he was 25. Apart from running his own consulting firm. Seth spends his time rowing. As a financial journalist Seth has published stories for NPR Business Online, as well as Buzz Feed and Motherboard. As a contributor to The Ticker Times, Seth mostly covers markets and trade.
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