Deutsche Bank to Boost FX as it Cuts 18,000 Jobs
With a morning of gloom settling over several global offices of Deutsche Bank, the foreign exchange desks of the firm remain largely unaffected by the latest round of cost cutting. Over the weekend the company announced that it is going to execute another brisk restructuring of its operations, this time cutting close to 18,000 jobs.
The top German lender has been struggling to retain profitability for years, and it continues curtailing its activity at the investment bank. The firm announced that the bulk of the job cuts are going to be in equities and fixed income. Close to a fifth of Deutsche Bank’s employees have been let go this morning.
Elaborating on the changes to the firm’s investment bank, Deutsche Bank said in a statement that it plans to reduce the amount of capital used by its Fixed-Income Sales & Trading business, in particular, Rates.
While the bank is focusing to cut down on its exposure to loss-making business, it will also increase its focus on profitable endeavors at the German lender’s investment bank. The firm is focusing on its traditional strengths in financing, advisory, fixed income, and currencies.
In its official announcement on the restructuring, Deutsche Bank’s management highlights that it expects to increase the firm’s activity in areas of particular relevance for corporates, including credit and foreign exchange products.
“As the bank continues to provide strategic advice to corporate clients including a focused equity capital markets business, it will keep an equity and macro research capacity as well as a targeted equity sales force,” the firm elaborated on its equities desk.