Magazine article American Banker

Deutsche Says It Will Cut 4,500 Additional Jobs

Magazine article American Banker

Deutsche Says It Will Cut 4,500 Additional Jobs

Article excerpt

Deutsche Bank AG said Thursday that it will cut 4,500 more jobs, bringing the layoffs announced this year to 7.5% of its work force.

About 3,300 cuts are slated for the Frankfurt banking company's private-client and asset management division -- 2,500 in Germany and 800 in the United States. The remaining 1,200 layoffs are to come at DB Services, its back-office operation.

Deutsche Bank has been trying to cut costs and expand parts of its business at the same time. The news came as it announced a 49% drop in third-quarter profits, fueled partly by writedowns in its corporate investment units as well as its private equity and real estate portfolios.

It also came just weeks after chief executive Rolf Breuer said he would refrain from widespread layoffs in the United States in order to allow employees here to recover from the terrorist attacks of Sept. 11.

The company said Thursday that there would be no compulsory layoffs. It was unclear, however, whether it intends to use its planned acquisition of Zurich Financial Services AG's U.S. money management unit, Zurich Scudder Investments, as a way to cut fat in its U.S. operations. That $2.5 billion deal was announced in September as part of Deutsche Bank's bid to increase its asset management presence here; it awaits regulatory approval.

The latest cuts come on top of 2,600 announced in February, 1,900 of which have been made.

Most of the cuts have been in Germany, said Evangelos Kavouriadis, an analyst at Sanford C. …

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