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Layoffs Watch '11: Deutsche Bank

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Remember last week, when Deutsche Bank said a report they plan to save between 1 billion euros ($1.43 billion) and 2 billion euros a year and "win market shares" by purging employees was total BS? According to CEO Josef Ackerman, it's more like 50 percent BS/50 percent not so much BS.

Mr. Ackermann conceded that European banks don't face a "rosy" future in their home markets unless they can gain market share. Deutsche Bank has made an attempt at this by taking over retail bank Deutsche Postbank and other units. Deutsche Bank will need to "consider job cuts if markets don't improve in September and beyond," Mr. Ackermann said at a banking-sector conference in Frankfurt on Monday.

Against the backdrop of limited income growth, Mr. Ackermann underlined the importance of keeping costs under control. A recent media report suggested that Deutsche Bank might step up efforts to improve efficiency and aim to make additional annual savings of €1 billion to €2 billion (about $1.42 billion to $2.84 billion), resulting in a possible reduction of staff in investment banking. The investment-banking unit, which is responsible for the lion's share of the group's earnings, is already implementing a cost-reduction project known as Integra. It aims to better integrate the investment-banking unit's corporate financing, transaction banking and trading activities, and through doing so add €800 million in total to pretax profit in 2011 and 2012.



Layoffs Watch '12: Deutsche Bank

The Germans thought about it and decided yes, layoffs sound like a great idea. Deutsche Bank said it will eliminate 1,900 jobs, including 1,500 at the investment bank, as part of an effort to save 3 billion euros ($3.68 billion). Deutsche Bank, based in Frankfurt, forecast “substantial costs” to achieve the savings without giving a figure in a statement to the stock exchange today. The job reductions are part of a strategy review Anshu Jain and Juergen Fitschen, Deutsche Bank’s new co-chief executive officers, are conducting as the lender grapples with declining revenue from the investment bank, which reported a 63 percent decline in second-quarter earnings today...“The time for vague promises of cultural change in our industry is long gone,” Jain said on a conference call with analysts and reporters. Deutsche Bank’s leaders are “totally determined to act quickly and decisively.” Deutsche Bank To Cut 1,900 Jobs In Bid To Save EU3 Billion [Bloomberg]

Layoffs Watch '12: Deutsche Bank

The Germans are not yet done firing employees in Asia. Deutsche Bank fired around a third of the staff in its Asia equity derivatives business on Tuesday, as part of a global cost savings plan announced on July 31, according to sources familiar with the matter. Just over 20 people remain in the division, down from a number in the mid 30s, according to one source, as Deutsche Bank and others seek to cut costs in businesses that are failing to generate adequate revenues as the global economy slows. The bank let go five traders, four product structurers and at least one salesperson from the division, the sources said, adding that the numbers were not yet finalised because the discussions were continuing...These cuts follow on the heels of layoffs in June in Deutsche Bank's Asian equities business, which like its counterparts at other firms globally has been struggling this summer due to slack trading volumes and a sharp decline in new share issuance. Deutsche Bank cuts a third of jobs in Asia equity derivs [Reuters]