Deutsche Bank axes whole teams in Asia-Pacific as 18,000 job cuts begin

File: Deutsche Bank launched the restructuring on Sunday in Europe, outlining a plan that will see it dramatically scale back its investment bank.

File: Deutsche Bank launched the restructuring on Sunday in Europe, outlining a plan that will see it dramatically scale back its investment bank.

Wikimedia Commons

SYDNEY - Whole teams in Deutsche Bank's Asian operations were told their positions were gone on Monday, as the lender began axing 18,000 jobs globally in one of the biggest overhauls to an investment bank since the aftermath of the financial crisis.

The German bank launched the restructuring on Sunday in Europe, outlining a plan that will ultimately cost 7.4 billion euros ($8.31 billion) and see it dramatically scale back its investment bank -- a major retreat after years of working to compete as a major force on Wall Street.

As part of the overhaul, the bank will scrap its global equities business and also cut some of its fixed-income operations -- an area traditionally regarded as one of its strengths.

While the bulk of the 18,000 job losses are widely expected to fall in Europe and the United States, on Monday the cuts also hit offices from Sydney to Hong Kong.

Deutsche Bank gave no geographic breakdown for the job cuts when it announced the plan on Sunday.

Bankers in Sydney seen leaving the lender's offices on Monday confirmed they worked for Deutsche Bank and were being laid off, but declined to give their names as they were due to return later to sign redundancy packages.

One person with knowledge of the bank's operations in Australia said its four-strong equity capital markets team was being let go, but that most of its mergers and acquisitions (M&A) team would not be immediately affected.

Deutsche had some 4,700 staff in Sydney, Tokyo, Hong Kong and Singapore, showed factsheets on its website.

One Hong Kong-based equities trader who had been laid off said the mood was "pretty gloomy" as people were called individually to meetings.

"(There are a) couple of rounds of chats with HR and then they give you this packet and you are out of the building," the trader said.

Several workers were seen leaving the offices holding large envelopes with the bank's logo.

A Deutsche Bank spokeswoman declined to comment on specific departures, saying the bank would be communicating directly with employees.

"We understand these changes affect people's lives profoundly and we will do whatever we can to be as responsible and sensitive as possible implementing these changes," she said.

Source
Reuters