Behold The European Recovery: Deutsche Bank To Fire 25% Of All Workers

Tyler Durden's picture


Deutsche Bank has witnessed an exodus of executives this year in what’s been a tough stretch for the German lender. Here’s a brief recap of the bank’s recent trials and travails for those who need a refresher:

The bank, which has paid out more than $9 billion over the past three years alone to settle legacy litigation, has become something of a poster child for corrupt corporate culture.


In April, Deutsche settled rate rigging charges with the DoJ for $2.5 billion (or about $25,474 per employee) and subsequently paid $55 million to the SEC (an agency that’s been run by former Deutsche Bank employees and their close associates for years) in connection with allegations it deliberately mismarked its crisis-era LSS book to the tune of at least $5 billion. 


But it was out of the frying pan and into the fire so to speak, because early last month, the DoJ announced it would seek to extract a fresh round of MBS-related settlements from banks that knowingly packaged and sold shoddy CDOs in the lead up to the crisis. JP Morgan, Bank of America, and Citi settled MBS probes when the DoJ was operating under the incomparable (and we mean that in a derisive way) Eric Holder but now, emboldened by her pyrrhic victory over Wall Street’s FX manipulators, new Attorney General Loretta Lynch is set to go after Barclays PLC, Credit Suisse Group AG, Deutsche Bank AG, HSBC Holdings PLC, Royal Bank of Scotland Group PLC,UBS AG and Wells Fargo & Co. 

As for the employee exodus: 

Co-CEOs Anshu Jain and Jürgen Fitschen were shown the door (well, technically they resigned, but with shareholder support plummeting amid skepticism about both financial targets and ongoing legal problems, it’s easy to read between the lines) in June after which the bank’s global head commercial real estate Jonathan Pollack defected to BlackStone. Pollack's departure came just one month after the bank's head of structured finance Elad Shraga left to start his own fund. Shraga was instrumental in helping Deutsche become "an award-winning arranger of asset- and mortgage-backed debt." Shraga had been with Deutsche Bank for 15 years. 

Well now - and this follows similar cuts across Wall Street and underscores the extent to which Mario Draghi hasn't succeeded in printing the EMU back to economic prosperity - quite a few more employees will be departing, only this time, the departures will be ... how should we put this ... oh yes, “mandatory.” Here’s Reuters

Deutsche Bank (DBKGn.DE) aims to cut roughly 23,000 jobs, or about one quarter of total staff, through layoffs mainly in technology activities and by spinning off its PostBank (DPBGn.DE) division, financial sources said on Monday.


That would bring the group's workforce down to around 75,000 full-time positions under a reorganization being finalised by new Chief Executive John Cryan, who took control of Germany's biggest bank in July with the promise to cut costs.


Cryan presented preliminary details of the plan to members of the supervisory board at the weekend.


A spokesman for the bank declined comment.


The bank is primarily reviewing cuts in the parts of its technology and so-called back office operations that process transactions and work orders for client-facing staff. A significant number of the some 20,000 positions in that area will be reviewed for possible cuts, a financial source said.

Whether or not the move will do anything to appease impatient shareholders (the same shareholders who ultimately forced out Jain and Fitschen for foot-dragging on efforts to boost profitability) or, more importantly, to improve the bank's utterly corrupt corporate culture remains to be seen but we can't say we're optimistic.

The cuts, it should be noted, aren't unexpected. As Cryan noted after taking the helm, "the investment bank’s securities and derivatives trading businesses can’t continue to soak up capital. We cannot afford that luxury. Reducing this reliance should not place us at a competitive disadvantage as the market has anyway already moved in that direction." Fair enough. We just hope there are still some competent people around to manage this:

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Mon, 09/14/2015 - 10:21 | 6545926 Bangin7GramRocks
Bangin7GramRocks's picture

"Useless eaters" - Ayn Rand

Mon, 09/14/2015 - 10:26 | 6545956 ZH Snob
ZH Snob's picture

what do you call 23K unemployed bankers?








a good start.

Mon, 09/14/2015 - 10:47 | 6546055 Sudden Debt
Sudden Debt's picture

All replaced by a APP

I still have a hard time figureing out why banks still have to many emoployees. Everything is done online.

Mon, 09/14/2015 - 11:10 | 6546154 Nimrod of the North
Nimrod of the North's picture

Nope, to be replaced with fresh Syrian immigrants at minimum wage!

Mon, 09/14/2015 - 11:12 | 6546166 knukles
knukles's picture

Green Shoots!  On people's graves.

Mon, 09/14/2015 - 11:19 | 6546204 Headbanger
Headbanger's picture

Heilig  Scheiße !!

Mon, 09/14/2015 - 13:06 | 6546699 KnuckleDragger-X
KnuckleDragger-X's picture

Yeah, and bankers as fertilizer.......

Mon, 09/14/2015 - 11:14 | 6546186 Miss Expectations
Miss Expectations's picture

 Islamic Banks operate under Islamic Sharia rules and do not charge interest to their customers.

Mon, 09/14/2015 - 12:31 | 6546553 longjohnshorts
longjohnshorts's picture

Um, yes, they don't charge an arm and a leg like Western banks, but they can be aggressive enough so that, when you're around them, you have to be careful not to lose your head.



Mon, 09/14/2015 - 13:07 | 6546706 KnuckleDragger-X
KnuckleDragger-X's picture

You do pay a 'fee' and that fee tends to be a lump sum......

Mon, 09/14/2015 - 15:18 | 6547475 uhb
uhb's picture

utter bullsh1t. you do pay interest, but its just another name.

Mon, 09/14/2015 - 11:12 | 6546165 Sages wife
Sages wife's picture


Mon, 09/14/2015 - 12:01 | 6546419 ersatz007
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once there's only ONE bank then you may not have to worry about any issues with respect to your funds going missing do to a database mismatch error...pretty common when two banks merge.  i'm not aware of any APP able to resolve such a thing; it usually takes a good old-fashioned human being.  


but it's good to know that the highest paid f-tards will be able to get a job elsewhere - or at least retire in comfort. it's the peons that are f'd. great world we live in. progress!

Mon, 09/14/2015 - 10:57 | 6546097 Klemens
Klemens's picture

This is only the begining!  All western Banks are dead!

Mon, 09/14/2015 - 11:15 | 6546192 Klemens
Mon, 09/14/2015 - 11:51 | 6546348 RaceToTheBottom
RaceToTheBottom's picture

This would have happened closer to the Lehman timeframe had the Banksters been allowed to fail.  Deuschbank has been dead bank walking since that time.  

Worse than Japanese banks

Mon, 09/14/2015 - 10:26 | 6545958 Haus-Targaryen
Haus-Targaryen's picture

PostBank spin off huh? 


Mon, 09/14/2015 - 10:39 | 6546015 Manthong
Manthong's picture

Deutschland unter alles.

Mon, 09/14/2015 - 11:00 | 6546110 Klemens
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Deutsche Bank is a jewish controlled Rothschild Bank! It has nothing to do with Germany. Satans Bankers will close all this Banks, they have got the Gold and they do not need this banks anymore.


Mon, 09/14/2015 - 11:25 | 6546236 Son of Loki
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Mon, 09/14/2015 - 14:29 | 6547220 Manthong
Manthong's picture

OK.. DeutschBank unter alles.

Mon, 09/14/2015 - 10:27 | 6545960 NoDebt
NoDebt's picture

Are we all absolutely positive that the bankers are controlling everything and writing their own rules so they never lose?  I mean, I'm just asking.

Mon, 09/14/2015 - 11:14 | 6546187 DavidC
DavidC's picture

Not judging by what Nomi Prins was saying following her meetings with The Fed a month or so back.

Or by Timmay writing in his book that Mario's "We will do whatever it takes" was basically an off-the-cuff remark.

Or by The Fed's "We will raise rates in April...June...September...".

Or by Benny boy's "Rates will not normalise in my lifetime".

Etc, etc.


Mon, 09/14/2015 - 11:02 | 6546123 silver_stacker
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Douche Bank finally got a good hosing...

Mon, 09/14/2015 - 14:39 | 6547277 BandGap
BandGap's picture

The little rats are getting hosed, no tears there. The big rats are living comfortably elsewhere.

Mon, 09/14/2015 - 10:21 | 6545928 Secret Treaties
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Bankers?  Awesome!!

Mon, 09/14/2015 - 10:22 | 6545933 _ConanTheLibert...
_ConanTheLibertarian_'s picture


Mon, 09/14/2015 - 10:22 | 6545935 buzzsaw99
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fuck 'em

Mon, 09/14/2015 - 11:24 | 6546234 Headbanger
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....all !

Mon, 09/14/2015 - 10:24 | 6545942 cowdiddly
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is dat a puff of smoke I see ova dare? Ah, its just a smoldering pile of derivatives, for a second you had me worried.

Mon, 09/14/2015 - 10:24 | 6545944 XAU XAG
XAU XAG's picture

25% reduction in workforce for all firms around the what's comming


Welcome to Mad Max



Mon, 09/14/2015 - 10:25 | 6545952 NoDebt
NoDebt's picture

The only thing I'm lacking is the dingo.  Everything else I've already got.

Mon, 09/14/2015 - 10:28 | 6545964 Dr. Engali
Dr. Engali's picture

Dingo... reminds me of a joke.


How do you castrate a hillbilly?


Smack his sister in the back of the head.

Mon, 09/14/2015 - 10:29 | 6545975 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

I've always told that as "how do you circumsize a redneck" but i like yours better. 

Mon, 09/14/2015 - 10:32 | 6545988 buzzsaw99
buzzsaw99's picture

sister, uncle, whatever

Mon, 09/14/2015 - 10:43 | 6546036 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

always good for a laugh:


nope i dont have any jewish candy

Mon, 09/14/2015 - 10:28 | 6545966 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

already happened in europe and the US. im seeing a wave of european kids over here to china, mostly beijing and shanghai but even in random ass second tier cities you are starting to see a lot of spanish, italian, portugeuse, and irish (the pigs oh my!) moving over to teach english because they cant find any work back home. 

Mon, 09/14/2015 - 11:05 | 6546137 firstdivision
firstdivision's picture

Actually closer to 70% reductions will be coming.  Soon all middle managment will be slashed and left with executives and those that build the widgets.  It'll make census tabulation quicker as you'll only be an executive (not poor) or non-executive (poor).

Mon, 09/14/2015 - 10:25 | 6545949 kliguy38
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Its a start

Mon, 09/14/2015 - 10:25 | 6545950 q99x2
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They can join the million terrorist refugees in a war against their employers.

Mon, 09/14/2015 - 10:31 | 6545981 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

dont worry half of them already have jobs lined up in various regulatory agencies. 

Mon, 09/14/2015 - 11:07 | 6546145 firstdivision
firstdivision's picture

..or they can join the military and clean up after thier masters

Tue, 09/15/2015 - 22:37 | 6549534 BillGrossJr.
BillGrossJr.'s picture

Has Pope Francis met with Deutsche recently?

Mon, 09/14/2015 - 10:26 | 6545957 Seasmoke
Seasmoke's picture

Should have happened in 2008.  Next up Bank of America. 

Mon, 09/14/2015 - 10:50 | 6546066 3rdWorldTrillionaire
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Betting on Barclays before BofA...

Mon, 09/14/2015 - 11:05 | 6546139 chunga
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All time favorite quote re: Douche Bank:

Judge Arthur M. Schack of Kings County, New York in Deutsche Bank Nat. Trust Co. v Harris (Feb. 5, 2008 - Index No. 39192/2007)

“Further, the Court requires an explanation from an officer of plaintiff DEUTSCHE BANK as to why, in the middle of our national sub-prime mortgage crisis, DEUTSCHE BANK would purchase a non-performing loan from [bankrupt and now dissolved] INDYMAC….”


Mon, 09/14/2015 - 10:26 | 6545959 Dr. Engali
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For a minute there I thought I was about to shed a tear but it turned out to be pollen.

Mon, 09/14/2015 - 10:28 | 6545961 JustObserving
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That sure reduces the risk of Deutsche Bank's exposure to $64 trillion in derivatives which can blow up at any time

Mon, 09/14/2015 - 10:28 | 6545967 ebworthen
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Robot recovery!  Steel shoots!  Silicon seeds!

Mon, 09/14/2015 - 10:28 | 6545970 MWizard
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3 ways to become a frustrated investor

Do NOT follow this link or you will be banned from the site!