Mon06182018

LAST_UPDATEMon, 18 Jun 2018 3pm

Deutsche Bank Looks To Cut 10,000 Jobs To Reduce Costs: WSJ

Pic: ReutersPic: ReutersFRANKFURT: Deutsche Bank is planning to cut 10,000 jobs, or about a tenth of its global workforce, as part of efforts to reduce costs, The Wall Street Journal reported on Wednesday.

The Journal, citing unnamed sources, reported that job cuts were likely to extend into 2019.

Separately, Bloomberg News reported the bank was planning to withdraw from a number of equities markets across the globe.

The Bloomberg report, which also cited unidentified people, said that Deutsche would sharply scale back its presence in the United States, and had started cutting activities in Central Europe, the Middle East, and Africa.

Deutsche Bank, which holds its annual shareholder meeting on Thursday, declined to comment.

The loss-making bank said last month that it was planning to scale back its global investment bank and that equities was one of the areas it was looking at for possible cuts.

A person familiar with the matter told Reuters last month Deutsche Bank was expected to cut around 1,000 jobs or 10 percent of its workforce in the United States.

It has also said that it would cut back U.S. bonds trading and the business that services hedge funds.

The bank has been expected to announce further details of its reorganisation plans ahead of its AGM on Thursday.

Shareholders, fed up with a languishing share price and dwindling revenue, will call on the bank’s management to speed up the recovery process at the AGM.

Hans-Christoph Hirt, head of shareholder adviser Hermes EOS at Hermes Investment Management, told Reuters on Wednesday he wanted to see a “credible strategy with achievable targets.”

Deutsche Bank Chairman Paul Achleitner last month abruptly replaced CEO John Cryan with Christian Sewing amid investor complaints that the bank was falling behind in executing a turnaround plan.

“Critically, the most recent CEO appointment needs to work out,” Hirt said.

Deutsche Bank’s shares have fallen nearly 31 percent this year.

The bank, Germany’s biggest lender, is also under pressure from credit ratings agencies. Standard & Poor’s is expected to say by the end of the month whether it will cut Deutsche Bank’s rating after putting it on “credit watch” in April.

-Reuters