Deutsche Bank To Fire Another 10,000 Bankers, Bringing Total Layoffs To 20% Of Workforce

Tyler Durden's picture

The hits for Deutsche Bank just keep on coming. One day after a report that the German lender has imposed a hiring freeze in the latest bid to reassure investors that it has expenses under control and is stemming the outflow of cash, moments ago Reuters reported that Deutsche Bank's finance chief told his staff that job cuts at the bank could be double that planned, a step that could remove 10,000 further employees.

Such cuts would likely take many years but setting such a goal could reassure investors that the bank is determined to tackle costs that sources said the European Central Bank sees as bloated. Unless, of course, they are forced to cut much faster. If 10,000 job losses were ultimately to follow the 9,000 announced by management in October 2015, roughly one in five of the bank's workforce around the globe would be affected.

"Schenck said that the bank would need to cut another 10,000 staff to bring down costs," said a person who attended the meeting with the chief financial officer cited by Reuters. Although no such decision has yet been taken, Marcus Schenck's remarks, at an internal meeting, signal the lender is considering further significant cost cuts, as it faces a multi-billion-euro fine and a crisis of confidence among investors.

The discussion about further job cuts comes as Deutsche's chief executive, John Cryan, reassesses a year-old strategy to revive the flagging group, as ebbing market confidence sends its stock price tumbling and prompts some customers to withdraw funds.. A second person familiar with these discussions said the management was also examining the countries where the bank was active to see "whether it was really worth its while (staying in those countries)".

DB's latest  announcement follows Commerzbank, Germany's second biggest bank rival, which recently announced it would ax more than a fifth of its workforce - almost 10,000 staff.

Still, it is not clear if DB can achieve the cuts: given potential high severance costs and revenue losses, it remains unclear whether a further attempt by Deutsche to trim staff can be achieved. Headcount has actually risen at the bank, despite the plans announced by Cryan in October 2015 to slash staff. Employee numbers, which stood at more than 101,300 in the middle of this year, are higher than the roughly 98,600 one year earlier.

One hurdle in removing staff is that many are based in Germany, where strict labor law makes it difficult and expensive to fire employees. Of the 9,000 job cuts announced in October 2015, 4,000 are in Germany. 

In Germany, unlike Britain, for instance, labor representatives have an important say and appoint non-executive directors to Deutsche's supervisory board. They will argue for fewer cuts.

Additionally, DB's layoffs are getting to the point where it is now cutting into the muscle, and any additional terminations could result in a drop in revenue. Regardless of this, however, the heavy fine demanded by the U.S. authorities could prompt Cryan to act.

Once Germany's only bank to go head-to-head with U.S. rivals on Wall Street, stricter regulation, rock-bottom borrowing costs and still heavy costs has squeezed Deutsche's profits. Politicians in Germany, who are preparing for national elections in 2017, are watching developments nervously.


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wisehiney's picture

That german poontang gonna get nasty without all those douches.

nyse's picture

Cuts like these always come a little too late..

LadiesLoveCoolJames's picture

Just less people to share the inevitable post-bailout bonus bonanza.

Panic Mode's picture

They need to start ration cocaine, booze and hookers.

VinceFostersGhost's picture

 

 

Deutsche Bank To Fire Another 10,000 Bankers

 

What did those people actually do again?

Never One Roach's picture

They can now stand in line with asylum seekers for food stamps, welfare, etc

VinceFostersGhost's picture

 

 

Awesome.....the can move to Greece......and hang out on the beach!

 

Right after they train their muslim replacements.

Yes We Can. But Lets Not.'s picture

They distribute cheap pens.

And they're trained by the gubmint to spy on you.  If you walk into a branch and something seems just a bit off - say, deposit a bit larger than normal, etc. - they are to file an SAR on you.

Scooby Doo's picture

Secretaries, janitors, & the newly hired.

Billybullshit's picture

You cant un see that, can you

buzzsaw99's picture

10,000 FUCKING BANKERS?

that right there is the fucking problem with the world today. there are millions of those maggots, each one a bigger parasite than the last.

Arnold's picture

Glad I don't work for a bank.

 

Hey.... where did all my fucking money go?

TheytookERjobs's picture

Be your own bank - Crypto-Currencies https://coinmarketcap.com/

south40_dreams's picture

The stock will soar!

American Psycho's picture

Up 30 cents in pre-market trading.  Bullish, until it's not. 

nmewn's picture

So this is either like the life threatening Ebola Squirrel!!! virus or some sort of genetic flaw in it's DNA.

Perhaps its time to quarantine Doucheabank till we find out for sure ;-)

blown income's picture

Went to cash a check few days ago and I just looked at these bankers....

 

WTF do they provide. ...

 

Debt

 

Is there anything else we can do for you??

 

 

 

 

LawsofPhysics's picture

If you bleed them out you can in fact make blood pudding...

or fertilizer.

beavertails's picture

Great Bank Management 

10 percent job cut results in 5 percent more employees.

Obviously, didn't convert enough employees into contractors like USSA bank management 

GunnerySgtHartman's picture

Hey, it's just like the US government - "spending cuts" result in higher spending!

Vinividivinci's picture

How do you say in Gerrman..." Welcome to McDonalds, can I take your order"?

83_vf_1100_c's picture

Wilkommem to McDonalds, du ist haben fries mit das? Yeah, my Deutsche is shaky.

DuneCreature's picture

What ARE these people smoking in Europe?

Playing Bankster Musical Chairs

Live Hard, When Up Side Down Is Side Ways Something Is Going To Get Spilled, Blood Probably, Die Free

~ DC v2.0

FinanceNewb's picture

So long DB ?

Sarcasm of course

markar's picture

So long, sayonara, good bye,.. take your pick

Mustafa Kemal's picture

Auf Wiedersehen

 

Chuss

 

brada1013567's picture

Firing people always improves your stock price.

-Jean-Baptiste Emanuel Zorg

LawsofPhysics's picture

Well, that's a start...

The job will be finished when all the management has their head on pikes.

aliens is here's picture

That's 10000 job openings to unqualified migrants. You krauts did it to yourselfs.

JailBanksters's picture

What do unemplpyed bankers do ?

I can't imagine them becoming Taxi Drivers or Plumbers

 

Yukon Cornholius's picture

They take their experience and become consultants.

Moriarty Ragnarok's picture

And this is why Banks are bluffing when they say they will move from London to Europe due to BREXIT:

"One hurdle in removing staff is that many are based in Germany, where strict labor law makes it difficult and expensive to fire employees"

 

Two Theives and a Liar's picture

I bet "firing bankers" makes the same sound as "flushing the toilet".

Debugas's picture

my question is what that 20% of workforce was doing if the bank can simply fire them ? Were they simply getting salaries for doing nothing ?

markar's picture

It's all the tellers they won't need when they "bail in" the retail depositors.

Panic Mode's picture

I wish these bankers having a "Harry Xmas and Crappy New Year"

Coldfire's picture

Just convert the thing into a state-owned enterprise and have done with. This is like obsolescence on the instalment plan...

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) Oct 14, 2016 10:22 AM

The unintended consequences are going to be interesting. Lots of gimmigrants show up in Germany and expect to live the good life sucking on the government tit. The German middle class is told they have to pay for the lifestyle of the gimmigrants and be grateful. Then 30,000 bank employees from two banks are fired. It isn't rocket science to predict a hard swing to the right when German elections take place in 2017. Buh-bye Merkel.

Youri Carma's picture

HP laying off 3,000-4,000 employees between fiscal 2017 and fiscal 2019
http://hsprod.investis.com/shared/v2/irwizard/sec_item_new.jsp?epic=hewl...

HP Layoffs 2012 – 27,000
HP Layoffs 2012 – 2,000
HP Layoffs 2013 – 5,000
HP Layoffs 2014 – 16,000
HP Layoffs 2019 – 4,000
______________________________
HP Layoffs Total – 54,000

rosiescenario's picture

As DB sells bonds and is forced to pay junk interest rates they must come up with the income to pay that interest. Obviously they have chosen to cover the interest cost by reducing payrolls.

 

Do they have enough remaining employees to fire to cover all the additional interest costs on the bonds they will need to be selling in the future?

 

The market in its infinite wisdom welcomed this move today with a gain of 30 cents in DB's stock price. Unfortunately for those investors they have failed to see that DB just does not have enough remaining folks to fire to cover all the capital they need to raise if they just pursue the sales of bonds to raise money.

 

And what that means is that the bank will also need to start selling more stock to meet capital needs. If DB had to pay junk bond interest rates to sell their bonds I'd hazard a guess that they will be selling stock at a price far below that in the market today.

rosiescenario's picture

AND here's an interesting item to ponder...the linkage between Qatar (DB's biggest shareholder), the clinton foundation (which has been a recipient of Qatar's money), and our politicized DOJ:

 

As just reported in the WSJ:

"Oct. 14, 2016 8:28 a.m. ET

Deutsche Bank AG’s biggest shareholders, investment vehicles controlled by the Qatari royal family, have recently expressed concern about the threat of legal fines against the lender and whether it is adequately focused on its long-term strategy, according to people familiar with the matter."

 

Will Qatar call in the favor and have the DOJ cut DB's fine?

Youri Carma's picture

Indeed surprise, surprise! Qatar is backing Deutsche bank while keeping ‘the crazies from the basement’ happy with a $18.6 billion Boeing order.

Qatar won’t sell Deutsche Bank shares, might buy more: sources
http://www.reuters.com/article/us-germany-deutsche-bank-qatar-idUSKCN127111

Qatar mulls raising stake in Deutsche Bank to 25 percent: Spiegel
http://www.reuters.com/article/us-germany-deutsche-bank-qatar-stake-idUS...

Qatar Air orders up to 100 Boeing jets worth as much as $18.6 billion
http://www.reuters.com/article/us-qatarairways-boeing-idUSKCN1271QD

Deutsche Bank’s Biggest Investor Is Getting Worried As Government Rules Out State Bailout
http://www.zerohedge.com/news/2016-10-14/deutsche-banks-biggest-investor...

Father ¢hristmas's picture

Layoff 20% of your workforce in a fun game called, "Match our percentage of current market capitalization with our pink slip numbers", scumbag Kraut banker guys.

oncemore's picture

Firing sqad should fire.

Not the DB.