The German lender’s sweeping turnaround plan, including an exit from the equities sales and trading business, will slash the workforce by about 18,000 employees globally.
Tuesday 09, July 2019
Deutsche Bank’s massive reorganisation will leave thousands of finance employees out of work. And with firms throughout the industry running lean, they will not all find jobs easily, reported Bloomberg.
Workers from Sydney to London to New York received the details of their exit packages earlier this week and were left pondering their next move.
Hundreds of thousands of jobs have disappeared from the global finance industry since the 2008 crisis, and some of the biggest banks have not stopped cutting.
Automation and new technology have been replacing workers while reduced risk-taking has trimmed demand in areas such as structured finance. According to Coalition Development data, front-office headcount for investment banking and trading fell for a fifth year in 2018.
Additionally, hedge funds, which used to poach employees from Deutsche Bank’s equities business, have cut back in recent years.
Some traders may end up at family offices—investment vehicles for the ultra-wealthy that have been taking employees from Wall Street firms. Investment bankers may be helped by hiring at boutique firms such as Evercore, Goldman Sachs Group has been more aggressive in looking beyond its walls for senior-level hires in the past year, while JPMorgan Chase & Co and BNP Paribas have almost reversed all their post-crisis job cuts.
Many leaving Deutsche Bank will find it harder to locate their next position. Thousands of the cuts are in the equities trading business Deutsche Bank is eliminating—and that is an area hit particularly hard by automation.