Deutsche Bank AG eliminated whole teams at its Asian operations on Monday, as the German lender began axing 18,000 jobs globally in one of the biggest overhauls at an investment bank since the aftermath of the financial crisis.
The lender announced the job losses on Sunday as part of a restructuring plan that will ultimately cost 7.4 billion euros ($8.31 billion) and see it undo years of work aimed at making its investment bank a major force on Wall Street.
As part of the overhaul, the bank will scrap its global equities business and cut some operations in its fixed income – an area traditionally regarded as one of its strengths.
Deutsche Bank gave no geographic breakdown for the job cuts, though the bulk are widely expected to fall in Europe and the United States. The global day on Monday, however, began with cuts in Sydney, Hong Kong and elsewhere in the Asia-Pacific.
Entire teams in sales and trading are losing their jobs too, according to several Deutsche bankers.
Regionally, Deutsche used to regularly rank among the top 10 banks in league tables for ECM deals, but it has slipped in recent years, hitting 17th last year and 18th in 2019, Refinitiv data showed. So far this year, it ranks 8th regionally for M&As. Deutsche had some 4,700 staff at its main regional offices in Sydney, Tokyo, Hong Kong and Singapore, showed factsheets on its website.
Its investment banking team for the Asia-Pacific region numbered about 300 people before the cuts, of which 10% to 15% will be laid off, almost all in its equity capital markets division, according to a senior Asia banker with direct knowledge of the plans.
One Hong Kong-based equities trader who had been laid off said the mood was “pretty gloomy” as people were called individually to meetings.
Several workers were seen leaving the offices holding large envelopes with the bank’s logo. Three employees took a picture of themselves beside a large Deutsche Bank logo outside and hugged each other before hailing a taxi.
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.