Thursday 18 July 2019

Deutsche cuts put 100s of Irish jobs at risk

Overhaul: Deutsche Bank CEO Christian Sewing is aiming to ‘reinvent’ the business. Photo: AP
Overhaul: Deutsche Bank CEO Christian Sewing is aiming to ‘reinvent’ the business. Photo: AP
Donal O'Donovan

Donal O'Donovan

The future of around 750 Deutsche Bank jobs in Dublin remained unclear last night as the firm began large-scale redundancies in London and other financial centres.

The bank's Irish operations in East Point Business Park, close to the IFSC in Dublin, is made up of staff working in global transaction banking, operations, global investment solutions and data services.

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A spokeswoman declined to say how many of those roles are at risk, and how much of the Irish operation is tied to the investment bank that will bear the brunt of job losses.

At least some of the Irish operations are so-called middle office services for frontline investment bankers in London and New York. Yesterday, the German banking giant began laying off staff from London to Sydney and New York.

It plans 18,000 job cuts in a €7.4bn "reinvention", which could lead to yet another annual loss and knocked its already battered shares.

Germany's largest lender said on Sunday it would scrap its global equities operations and cut some in fixed-income, in a retreat from a long-held ambition to make its struggling investment bank, with 38,000 staff, a force on Wall Street.

Shares in Deutsche Bank, which has almost 91,500 staff around the world, rose initially but erased early gains and were down 5.6pc by yesterday afternoon, after its finance chief flagged "significant uncertainty" over breaking even in 2020. Its bonds also fell.

Hundreds of employees at the bank's Wall Street office were summoned to the building's cafeteria yesterday morning to be informed of their fate, sources within the bank told Reuters.

During one-to-one meetings with management and human resources, they were told that they were being laid off and informed of their redundancy terms, the sources said. At Deutsche Bank's investment banking headquarters in London, chief executive Christian Sewing told staff he was "reinventing" the bank.

Outside the London office, where the bank employs 8,000 people, several said they were leaving for the last time.

"I was terminated this morning. There was a very quick meeting and that was it," said one IT worker, who had been working on a project in the bank for more than two years.

Bankers leaving Deutsche Bank's Sydney office also said they had been laid off but declined to be identified as they were due to return later to sign redundancy packages.

Additional reporting Reuters

Irish Independent

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